After the major policy changes of 2025, the Trump administration and the Republican-controlled U.S. Congress undoubtedly view 2026 as an opportunity to cement these gains and further advance their policy agendas. But legislating is hard, rulemaking can be a lengthy process fraught with legal pitfalls, and the midterm elections loom. Set forth below is a preview of what employers can expect from a federal policy standpoint in 2026.
The 119th Congress
Federal lawmakers returned to Washington, D.C., this week for the second session of the 119th Congress. In the U.S. Senate, Republicans have a 53–47 majority, and in the U.S. House of Representatives, Republicans currently have a 218–213 majority (with four vacancies). These slim margins in both chambers mean that Republicans will need the assistance of Democrats to pass most legislation, unless the Republicans take another crack at the reconciliation process, which they used in 2025 to pass the “One Big Beautiful Bill Act” on a party-line basis.
To make things more complicated, the 2026 federal midterm elections will be held on November 3, 2026. The impending elections will heavily influence the Republicans’ legislative agenda in the coming months, as they look to move legislation that they believe will benefit them on Election Day. The midterm elections also create a truncated legislative calendar, as, in addition to their traditionally scheduled August recess, incumbent legislators seeking reelection are currently scheduled...
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