Congressional and Regulatory Update

Congress returns in January to begin the second session of the 119th Congress, but significant work remains. Only half of the Fiscal Year 2026 appropriations bills have been enacted, and Speaker Mike Johnson and Senate Majority Leader John Thune are racing to prevent a partial government shutdown when the current continuing resolution expires on January 30.
 

On Monday, the House Appropriations Committee unveiled the Consolidated Appropriations Act of 2026, a “minibus” package that bundles funding for Defense, Homeland Security, Labor, Health and Human Services, Education, Transportation, and Housing and Urban Development. The package would keep the government fully funded, though many spending levels are flat or slightly higher than what the White House had proposed to trim. One notable change is the restoration of funding for EPA WaterSense and EnergyStar, which were cut last year in the reconciliation measure known as the One Big Beautiful Bill (OBBB). It remains unclear whether the President will veto the bill, and there are reports of a second reconciliation effort in 2026. With the House GOP’s razor-thin majority, however, securing enough votes could prove difficult.
 

Last week, ASA Advocacy was active on Capitol Hill, meeting with House Majority leadership and bipartisan members of the Energy and Commerce Committee to stress the importance of energy choice and the need to reauthorize workforce investment programs that will help our industry grow. Several meetings were also held with our partners at PHCC, and ASA will co-host a Hill Day in Washington on May 5–6, 2026. Registration is now open, and more details are available. This is an important opportunity to network with colleagues and brief decision makers on the issues affecting our industry.
 

ASA is also working closely with industry partners at API to urge the Department of the Interior and other federal agencies to address permitting challenges and advance offshore drilling lease decisions that support U.S. energy leadership now and into the future.
 

Separately, ASA and coalition partners continue to push for the rollback and removal of personal data reporting requirements under the Corporate Transparency Act. The CTA has faced a series of legal challenges and sustained industry opposition due to its collection of personal information from business owners and executives.
 

In California, ASA is urging the California Energy Commission and the California Air Resources Board to halt a proposal that would require manufacturers, distributors, wholesalers, and contractors to report equipment and sales data to the state. In addition to comments submitted to the CEC last August, ASA Vice President of Advocacy Steve Rossi testified at a public hearing on January 9. This issue remains active, and members will be notified as new developments occur.