Congress reconvenes with Democratic majorities and looming funding deadlines
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Congress reconvenes amid Democratic control and another looming crisis over funding, the debt ceiling and corporate-friendly priorities

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Summary

The House and Senate return to Washington on Monday with a packed agenda and an ever-tightening timetable to avert a shutdown, handle the debt ceiling, and advance legislation ranging from defense spending to permitting reforms and college-athlete pay — all under conditions shaped by Republican decline and deepening partisan gridlock.

Congress is set to resume in Washington on Monday as the 119th session enters its final weeks. Lawmakers must act before the current funding lapse on Dec. 11, pass the National Defense Authorization Act and consider other proposals, including a construction permitting package and a bill to regulate name, image and likeness compensation for college athletes.

Democrats entered the new Congress with a sizable majority in the House and potentially up to 56 seats in the Senate, while Republicans returned with reduced numbers after recent midterm elections. The shift reduces incentives for bipartisan compromises, according to analysts, and underscores how fragile governing has become under divided pressure.

Some Republican members, such as Sen. Kevin Cramer (R-ND), have urged an early increase of the debt limit before the GOP loses further control. The federal debt surpassed $40 trillion in September, approaching the $41.1 trillion ceiling set by the 2025 budget reconciliation law. The Bipartisan Policy Center warned that Treasury could reach its borrowing limit by mid-summer, and a Bank of America estimate suggested the United States might be unable to meet all obligations by Nov. 2027.

Democrats may treat the debt ceiling as a negotiating tool in the next Congress, while Republicans would need a near-unanimous reconciliation vote to raise the limit, a difficult prospect given the narrow margins and entrenched obstruction.

A permitting reform deal reached by top Senate energy committee members before the election could face uncertainty. The Senate plans a procedural vote on the measure Monday evening, but Democratic leader Hakeem Jeffries (D-NY) reportedly did not support the agreement, and House Democrats have previously expressed reservations about handing corporations an easier path through environmental and community protections.

The National Defense Authorization Act, which authorizes more than $1 trillion in defense spending, was passed by the House in July but faced opposition from Senate Democrats over concerns about the Iran conflict. Senate Minority Leader Chuck Schumer (D-NY) criticized President Donald Trump’s approach to the Iran situation, stating the administration lacked authorization, a plan and an exit strategy. The bill also includes a provision requiring Pentagon approval for contractor stock buybacks and dividends, drawing criticism from businesses eager to protect profits.

Defense Secretary Pete Hegseth is expected to face an impeachment vote when Congress reconvenes, adding further complexity to the NDAA process and highlighting the instability inside the national security apparatus.

Other items on the agenda include a bipartisan college-athlete compensation package approved by the Senate, which faces opposition in the House, and legislation aimed at prohibiting members of Congress from trading individual stocks. The House-passed Stop Insider Trading Act, supported by Sen. Todd Young (R-IN), would restrict trading only for lawmakers and not require divestment of existing holdings, prompting Democratic resistance. Jeffries has highlighted a ban on congressional stock trading as a priority in his speaker-candidate communications, reflecting growing public anger over lawmakers profiting from privileged information.

Source

CNBC

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