December 2024 Policy Pulse

With less than a dozen legislative days left in the 118th Congress, lawmakers are still working through several pieces of must-pass legislation. Over the next two weeks Congress must tackle government funding (which is currently set to lapse on Dec. 20), the National Defense Authorization Act, an extension or renewal of the Farm Bill and a potential disaster relief bill to address the recent hurricanes in the southeast. Additionally, the debt ceiling expires in early January. While Treasury is able to take “extraordinary measures” to avoid a default if the limit isn’t lifted timely, those are only likely to provide a few months of relief.

Despite the tight deadlines and extensive to-do list, Republicans are also dedicating time to strategize around a tax reform package they hope to pass in the early months of 2025.

Election outcome

Republicans swept the 2024 elections capturing the White House, Senate and House of Representatives; however, they will be governing with razor thin majorities.

In the Senate, the Republicans fall short of the 60-seat threshold needed to overcome filibusters. In the House Republicans will control 220 seats), giving them a very slim majority. President Trump’s nomination of three House Republicans to positions within his administration has complicated matters, one of whom, Matt Gaetz, has since resigned from Congress and withdrawn his name for consideration. This will leave Speaker Johnson with just 217 Republican House members at the start of the 119th Congress.