In January, the Republican Party will assume complete control of Washington, taking the reins of the House, Senate, and the White House. This marks the first time since early 2019 that Republicans hold such unified power. However, despite this consolidation, their slim majorities in both chambers of Congress will likely limit how much they can achieve, underscoring the challenges of governing in such a polarized political climate.
As the current Congress works to fund the government before its term ends, Republicans are exploring a short-term funding extension into the spring. House Speaker Mike Johnson has expressed a preference for March, giving him time to navigate leadership challenges and avoid a contentious omnibus bill during the holiday season. While this approach buys time, it could complicate the early days of Donald Trump’s presidency, potentially delaying legislative priorities and Cabinet confirmations.
Speaker Johnson's relationship with Trump is pivotal. With a narrow House majority, Johnson benefits from Trump’s influence in maintaining party cohesion. This partnership is expected to help Johnson navigate legislative hurdles, especially during high-stakes negotiations. Nonetheless, the evenly divided Congress—the most closely split since the Great Depression—will present formidable challenges for Republicans attempting to pass major legislation.
The legislative focus for the first 100 days of Trump’s second term will likely include defense, energy, and immigration. While sweeping reforms through reconciliation may be limited, Republicans may prioritize border security funding to align with Trump’s campaign promises. Tax reform, though crucial, is expected to be tackled later due to its complexity and potential intra-party disagreements over its provisions.
Tax policy remains a contentious issue. While Trump has proposed significant tax cuts, including eliminating taxes on Social Security benefits and expanding the child tax credit, these ideas face obstacles. The financial implications of such measures and their potential to increase the deficit may provoke pushback, even within the Republican Party. Reconciling these ambitious plans with fiscal constraints will require careful negotiation and prioritization.
Meanwhile, Democrats, despite losing control of Congress and the White House, are expected to remain influential in key areas such as government funding and confirmations. Their involvement will be critical in bipartisan efforts to prevent government shutdowns and address legislative gridlocks. Additionally, Democrats will use their platform to hold Republicans accountable and create impactful moments during hearings, maintaining visibility and relevance as they recalibrate their strategy for the next political cycle.