As 2026 nears, legislative and executive priorities are poised to continue shaping U.S. policy, the economy and global engagement. From evolving priorities on trade, health care and energy to an active election cycle fueled by cost-of-living pressures and rapid innovation, the Administration and Congress are preparing for another full year.
Cornerstone Government Affairs’ team of bipartisan policy experts recently sat down to offer an overview of what’s on the horizon in Washington and highlight the policies that will take shape in 2026. Here are some of our main insights for companies and organizations across the U.S.:
Administration
In 2026, the Administration is expected to continue its ‘America First’ mentality by focusing on affordability, technological innovation, shifting international relationships and redefining the federal government’s role. From a political standpoint, the White House will frame 2026 around President Trump’s agenda and perceived policy wins, with the President returning to the campaign trail to boost turnout in key states and help Republicans maintain control of Congress during the midterms.
Congress
In a midterm year, both the House and Senate will be lighter on session days to allow for ample campaigning, leaving limited time to pass key legislation.
For Republicans, January will begin with addressing the remaining nine appropriations bills to keep the government funded past January 30. House Speaker Mike Johnson has also indicated that the party intends to make progress on health care in Q1, likely through a reconciliation package. Throughout the year, we also expect to see movement on Surface Transportation Reauthorization, Appropriations, the National Defense Authorization Act (NDAA) and a joint review of the United States–Mexico–Canada Agreement (USMCA) .
Democrats, meanwhile, will stay focused on affordability when it comes to both messaging and offering proactive policy solutions. They will amplify the issue of rising costs – of health care, energy, housing and food prices – and the impacts of the Trump Administration and Congressional Republicans’ agenda. Despite the heated political environment of a typical midterm election year, there may still be room for bipartisan work on issues like AI, tech policy, transportation and appropriations, though another GOP reconciliation effort could limit cooperation across the aisle. Procedurally, we anticipate that House Democrats will continue to use the discharge petition process to attempt to advance bipartisan legislative priorities. And in the Senate, with the new expedited procedures to consider nominations, Leader Thune will have more floor time available for legislating.
Tax & Trade
The economic landscape is set for an active, contentious 2026. Lawmakers see a potential avenue for a bipartisan tax package next year, with everything from extenders to housing incentives on the table. In addition, Republicans are gearing up to use reconciliation for bigger tax changes, while international tax rules and digital asset policy will likely demand fresh attention. Tariffs remain a wildcard—legally, politically and economically—as the Administration simultaneously navigates negotiations abroad and waits to see how the Supreme Court rules on Trump’s Executive Orders.
Artificial Intelligence
AI policy will have a bipartisan focus in Washington into 2026. The Administration has shown they will continue pushing forward on utilizing AI at all federal agencies, with the goal to implement AI use cases and partnerships with the private sector across the federal government. With workers remaining concerned about job displacement or opportunities at data centers, the state vs federal battle on AI legislation will also be consequential in the coming year.
Energy
Federal energy policy will be shaped by election-year dynamics and growing concerns over affordability. While both parties recognize voter sensitivity to rising electricity costs, Democrats will emphasize accessibility and affordability while Republicans continue to advance an energy dominance agenda. Expanding energy infrastructure will remain central to meeting demand from data centers with manufacturing, improving reliability and lowering prices being key considerations for leaders. We anticipate that this urgency will also drive momentum around permitting reform.
Health Care
Democrats are sharpening their focus on health care affordability heading into 2026, particularly as the enhanced Affordable Care Act (ACA) tax credits expire, driving significant premium increases. With high costs topping voter concerns, the party will lean into its longstanding support for policies that lower premiums and protect coverage during the midterms. Their recent proposal to extend enhanced premium tax credits has already gained some bipartisan support, giving them crucial momentum heading into the New Year. If an extension deal emerges, it could pave the way for bipartisan progress towards a larger health legislative package that could include longer term telehealth extensions and Medicare coverage of early detection screening tests among other possible proposals.
At the same time, Republicans are grappling with health care messaging as they push for tighter guardrails on extending enhanced ACA premium tax credits, emphasizing the need for fraud prevention and eligibility reforms. The Administration’s Make America Healthy Again (MAHA) agenda will also continue to gain traction across agencies in 2026 through CMS rulemaking and innovation models, and HHS’s efforts to reorganize the Department and programs to align with the MAHA agenda. The President’s fiscal year 2027 budget will likely reflect this emphasis, but it remains to be seen if Congressional enactment will materialize.
Appropriations
Nine of the remaining twelve FY26 appropriations bills are funded through January 30, and bicameral negotiations on subcommittee allocations are showing progress. While hurdles remain, the Republican majority has cautious optimism that many full year bills will advance before the looming deadline. Meanwhile, the FY27 cycle will begin in the first quarter with the President’s budget and congressional appropriations request deadlines. In 2026, we expect partisan House bills, more bipartisan Senate efforts, additional rescission attempts, and a continuing resolution (CR) before Congress revisits major funding decisions during the lame duck.
Want to learn more? Reach out to our team here to discuss how we can help meet your policy goals in 2026 and beyond.