The curtain goes up today on a lame duck session of Congress colored by last week's midterm elections. With new (and sizable) Democratic majorities set to take control of Congress on January 3, this post-election session may be contentious, leaving little room for progress on anything other than must-pass bills. This week, we look at what we know about the next few weeks in Congress.

The first thing Republicans in Congress are doing is electing their House and Senate leadership teams for 2027, huddling today with candidates in preparation for caucus elections tomorrow. After Speaker Mike Johnson (R-LA) stepped aside, Republicans will pick between Representatives Steve Scalise (R-LA) or Jim Jordan (R-OH) as Minority Leader in the next Congress. Senate Republicans appear ready to re-elect their leadership without changes. House and Senate Democrats are expected to pick their leadership teams later this month.

Party leaders in Congress will next need to determine committee ratios and the chairs for each, followed by committee assignments by each party's respective steering committees. The Committee on Ways and Means, to be chaired next year by Ranking Member Richard Neal (D-MA), has a current party ratio of 25-18. The Committee on Finance, to be chaired by Ranking Member Ron Wyden (D-OR), has a party ratio of 14-13. Those ratios could change, but probably not substantially.

While preparation for 2027 churns forward, negotiations are set to resume on the items Congress must finish before leaving town in mid-December. Two bills stand in the way: a bill to extend or make permanent funding for fiscal year (FY) 2027, set to lapse on December 11, and the National Defense Authorization Act (NDAA). Work on both will likely go down to the wire.

Funding the government faces new challenges and party motivations in the lame duck. With a large incoming Democratic majority, Republicans will probably aim to find an agreement on a full-year funding bill for FY 2027, whereas Democrats may press for a shorter-term extension, knowing that their negotiating position strengthens significantly in January. These conflicting motivations could prove difficult to resolve, so don't be surprised if the December 11 target date for adjournment slips by a week. An agreement on the NDAA is typically tough to hammer out but always finds bipartisan support in the end.  

Beyond this must-pass legislation, the potential exists for a partisan Republican-only reconciliation bill or a year-end bipartisan bill. Both vehicles would need to overcome significant political and practical obstacles. A bipartisan bill is the best opportunity for enacting tax legislation but as long as Republicans are considering a reconciliation bill, it will be difficult for Democrats to engage on a bipartisan bill. #TaxTake

Upcoming Speaking Engagements

Mike will speak at the PLI Tax Strategies for Corporate Acquisitions, Dispositions, Spin-Offs, Joint Ventures, Financings, Reorganizations & Restructurings 2026 conference on November 10.

Miller & Chevalier is proud to sponsor the 2026 Georgetown-IRS Institute on Current Issues in International Taxation on December 15-16. Layla is co-chairing the event. Mike and Tax Member Jeff Tebbs will speak at the conference.

In the News

In advance of the midterms, Marc discussed post-election tax policy with Law360.

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