Budget & Taxes

The CLINIC Assistance Act creates a federal grant program to help accredited law schools establish clinical programs where law students assist individuals with employee welfare benefit plans. These grants, capped at $500,000 per school per year, allow institutions to hire supervising attorneys and support students in helping people appeal denied benefits, sue for unpaid costs, or enforce their rights under the Employee Retirement Income Security Act. The Department of Labor will coordinate with these programs to share information and provide lists of eligible schools to those needing assistance. A total of $5 million is authorized for this initiative over five years, starting in fiscal year 2026.

The NO FEES Act of 2026 modifies the Federal Food, Drug, and Cosmetic Act to provide fee waivers for annual registration of U.S. small businesses while imposing higher fees on foreign companies. Under the bill, a U.S. establishment with fewer than 20 full-time equivalent employees qualifies for a 100 percent fee waiver for three years, followed by a 50 percent waiver for the next two years. To receive this benefit, qualifying businesses must submit tax returns or payroll records at least 60 days before the fee is due, and the decision to grant a waiver cannot be based on past payment history. Conversely, the law mandates that foreign-owned establishments pay a registration fee eight times the standard amount and explicitly bars them from applying for any fee waivers.

The Protecting Innocent Taxpayers from Endless Assessments Act limits the time the government has to collect unpaid taxes when a tax preparer commits fraud. Specifically, it prevents the statute of limitations from being extended if the taxpayer did not intentionally cause the error. This change directly benefits individuals who were victims of fraudulent tax filing practices by ensuring their tax liability cannot be pursued indefinitely. The law applies to any tax assessments or legal proceedings that begin after the bill is enacted.

Continuing Appropriations Act, 2027 This bill provides continuing FY2027 appropriations for federal agencies and extends various expiring programs and authorities. Specifically, the bill provides continuing FY2027 appropriations to federal agencies through the earlier of December 4, 2026, or the enactment of the applicable appropriations act. It is known as a continuing resolution (CR) and prevents a government shutdown that would otherwise occur if the FY2027 appropriations bills have not been enacted when FY2027 begins on October 1, 2026. The CR funds most programs and activities at the FY2026 levels with several exceptions that provide funding flexibility or additional appropriations for various programs. For example, the bill includes exceptions for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); Small Business Administration loan programs; the Federal Emergency Management Agency’s Disaster Relief Fund; the Indian Health Service; and wildfire suppression activities. In addition, the bill extends several expiring programs, authorities, and restrictions, including the Department of Agriculture’s livestock mandatory price reporting program, the National Flood Insurance Program, limits on pay increases for the Vice President and certain senior political appointees, the Temporary Assistance for Needy Families (TANF) program, the authority to waive certain pay limitations that apply to wildland firefighters and other wildland fire personnel,  the authority for the District of Columbia to spend local funds, and the freeze on cost-of-living adjustments for Members of Congress.  The bill also provides the customary payments to the beneficiaries of the late Representative David Scott and the late Senator Lindsey Graham.

The ONSHORE Manufacturing Act creates three new tax credits to financially encourage the domestic production of essential medical supplies and equipment. The first credit provides a percentage of a company's taxable income based on wages paid to workers manufacturing specific drugs, devices, and ingredients listed as critical for national security or defense. The second and third credits offer tax breaks for businesses that purchase and install advanced machinery or environmental compliance equipment used to produce these same medical products within the United States. These incentives are designed to support companies that manufacture specified medical goods in whole or significant part domestically, with the benefits applying to taxable years beginning after December 31, 2026. Additionally, the bill requires several federal agencies to submit annual reports to Congress starting in 2027 to track how these credits affect supply chain resiliency and adherence to domestic procurement laws.

The Tariff Refund Act of 2026 directs the IRS to issue refunds or credits to eligible U.S. citizens who meet specific income and residency criteria. To qualify, an individual must have an adjusted gross income below $200,000, $300,000 for heads of household, or $400,000 for joint filers, and cannot be incarcerated or claimed as a dependent on another's tax return. The bill treats these eligible taxpayers as having already paid a fixed amount of tax toward their 2025 liability, effectively refunding that sum if they have not yet paid it. Payments will be processed electronically to existing bank accounts or Treasury-sponsored accounts, with no interest applied to the refunds. The legislation also includes provisions to prevent duplicate payments and allows dependents of incarcerated individuals to receive funds if the primary earner is ineligible.

The National Coordination on Adaptation and Resilience for Security Act of 2026 establishes a new Chief Resilience Officer within the National Security Council to lead federal efforts in preparing for natural hazards like wildfires, sea level rise, and drought. This official will create interagency working groups and a Partners Council on Resilience to coordinate with state, local, tribal, and private sector partners, ensuring that funding and resources prioritize the most vulnerable communities. The bill mandates the development of a National Resilience Strategy within two years, which must outline how federal agencies will reduce redundancies, improve disaster mitigation, and support infrastructure that can withstand environmental changes. Additionally, the act requires the creation of a central clearinghouse to share data and technical assistance, with all requirements set to expire after 10 years or upon the submission of a third assessment report.

This bill, known as the ABLE MATCH Act, aims to help individuals with disabilities save money by providing a federal tax credit that is automatically deposited into their ABLE savings accounts. The program targets low-income earners by offering a 100% match on up to $2,000 of annual contributions, provided their income falls below 200% of the federal poverty limit, with the credit amount gradually decreasing for higher incomes. To support wider adoption, the legislation also authorizes the Treasury to award $5 million annually in grants to states for promoting these accounts and includes a requirement for collecting demographic data on account holders. These changes are designed to increase financial security for people with disabilities by encouraging savings without jeopardizing their eligibility for other government benefits.

The Employee Ownership Fairness Act of 2026 modifies tax rules for Employee Stock Ownership Plans (ESOPs) to help workers better manage their retirement savings. Currently, money contributed to ESOPs counts toward annual contribution limits, which can prevent employees from making additional contributions to other retirement accounts or receiving full employer matches. This bill changes those limits so that stock contributions and loan repayments for ESOPs do not count toward the caps, allowing employees to diversify their savings more easily. The changes apply to plan years starting after the law is enacted and affect companies that use ESOPs to provide employee ownership.

The Welcome Back to the Health Care Workforce Act establishes a grant program to help internationally educated health care professionals integrate into the U.S. health care system. Under this bill, the Secretary of Health and Human Services would award funds to eligible groups, such as hospitals, universities, and government agencies, after consulting with the Labor and Education departments. Recipients must use at least 20 percent of the money for system-wide improvements like mentoring networks and employer education, while the remaining funds can support individual needs such as licensing fees, language training, and living expenses. Priority is given to projects that address workforce shortages in rural areas or communities with significant gaps in health care staffing. The act also requires annual reporting on the number of professionals supported and their employment outcomes, with funding authorized through fiscal year 2031.