“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Happy New Year! Welcome to the first roundup of 2026. I have plenty of information to share to kick things off here.
*Government Affairs Roundup brought to you by CITGO*
Congress Returns to a Crowded Agenda
Congress is officially back in session, and lawmakers are returning to Capitol Hill amid a convergence of long-simmering disputes and fresh crises as the 2026 legislative calendar gets underway.
In just the first week back, both chambers are grappling with a wide-ranging slate of issues: the administration’s sudden intervention in Venezuela, a roundtable examining the Jan. 6 Capitol attack, a hearing on alleged misuse of federal funds in Minnesota, and a House vote on reviving expired Affordable Care Act tax credits. Looming over it all is the perennial deadline to fund the federal government.
Funding the government — often the most combustible issue on Congress’ to-do list — may actually be the smoothest lift, at least for now. After a bruising showdown late last year, bipartisan negotiators appear to have found early footing. In a rare bicameral breakthrough, top appropriators released the text of a three-bill funding package ahead of the Jan. 30 shutdown deadline. House GOP leaders are already preparing to whip votes, with a floor vote expected Thursday.
The compromise follows more than a month of negotiations and would fund the Energy, Commerce, Interior and Justice departments, along with water programs, the Environmental Protection Agency and federal science initiatives, through Sept. 30. Speaker Mike Johnson, who has repeatedly criticized sprawling omnibus bills, praised the smaller “minibus” approach and emphasized that the package spends less than prior funding measures. The deal also drew strong endorsements from the top Democratic appropriators, Rep. Rosa DeLauro and Sen. Patty Murray.
Still, significant hurdles remain. Congress must advance six additional spending bills before the deadline, including some of the largest and most politically sensitive budgets covering the departments of Defense, Health and Human Services, Labor and Education.
Health care, another unresolved flashpoint from last year, is also back on the agenda. A discharge petition to extend expired Affordable Care Act subsidies for three years could receive a procedural vote as early as Wednesday, with a final House vote possible Thursday. Even if it clears the House, however, the measure faces long odds in the Senate.
As lawmakers ease back into Washington, the message is clear: the early days of the new session will be anything but quiet.
Affordability at Center of Health Care Fight Returning in January
Health care policy is set to reclaim center stage when Congress returns to Washington in January, as lawmakers from both parties acknowledge that rising insurance premiums are straining millions of Americans.
That broad agreement quickly fractures when it comes to solutions. Lawmakers — and factions within each party — remain sharply divided on how to rein in costs, with multiple proposals under discussion but little consensus around a viable legislative path.
The House is expected to vote early in the session on a Democrat-led bill to extend enhanced Affordable Care Act tax credits for three years. The credits expired Dec. 31, and the vote is being forced by a discharge petition signed by four Republicans, enough to meet the threshold for floor consideration.
Even with Senate leaders having already rejected a procedural vote on a similar measure, a bipartisan group of senators continues to search for a compromise. Their discussions include adding Republican-backed provisions such as anti-fraud guardrails and income caps to limit eligibility for higher earners. Still, talks remain fragile: some Republicans insist that any extension include Hyde Amendment abortion restrictions — a red line for Democrats.
Speaker Mike Johnson, R-La., has acknowledged the complexity of the debate, calling health care “a very complicated issue,” while signaling additional efforts to lower costs early in 2026. “There is much more to come,” he said.
Below are some of the other health care issues Congress may take up next year beyond the ACA tax credits.
Health Savings Accounts
Expanding access to health savings accounts (HSAs) is a central feature of a proposal from Sens. Bill Cassidy, R-La., and Mike Crapo, R-Idaho. Their plan would provide up to $1,500 annually to individuals with HSAs enrolled in bronze-level ACA plans, while allowing the enhanced tax credits to expire.
President Donald Trump has expressed support for the approach, arguing that directing funds to consumers is preferable to subsidizing insurers. Senate Majority Leader John Thune, R-S.D., has echoed that view, calling Democrats proposed three-year extension a “waste of money.”
House Republicans say time constraints prevented them from including a similar provision in their ACA alternative before the holiday recess, but they expect to revisit the idea in the new year.
“I think we can get broad consensus on [health savings accounts],” Johnson said in December. If bipartisan support proves elusive, he added, the proposal could be advanced through a reconciliation bill.
Democrats, however, remain skeptical, arguing that HSAs cannot replace the expiring tax credits or ensure comprehensive coverage for lower-income enrollees.
Employer-Sponsored Coverage
While much of the recent debate has focused on the ACA marketplace, the majority of Americans receive health insurance through their employers — an area lawmakers say also warrants attention.
“I’d like to get something done for the affordability of the people on Obamacare, and then I’d like to do something for the affordability of people on employer-sponsored, commercial insurance,” said Cassidy, who chairs the Senate Health, Education, Labor and Pensions Committee.
Specific proposals have yet to emerge. Historically, Republicans have favored targeted changes rather than sweeping reforms, including expanding short-term health plans and other alternatives to traditional insurance. Crapo, the Senate Finance chairman, has also floated increasing the cap on medical expense deductions for individual tax filers.
He has further pointed to concerns about consolidation in the health care industry, warning that it can create “monopolistic powerhouses that block innovative disruptors, limit market competition and constrain consumer choice,” he said in a November statement.
Pharmacy Benefit Managers
Lawmakers are also expected to revive long-running efforts to reform pharmacy benefit managers (PBMs), which play a central role in negotiating drug prices. While several PBM bills have advanced through committees in recent years, broader legislative efforts have repeatedly stalled.
PBM provisions were included in the House version of Republicans’ 2025 reconciliation package but were stripped out by the Senate after failing to meet reconciliation rules. Later in 2024, negotiators added PBM reforms to a stopgap funding bill that would have required PBMs to pass 100 percent of rebates to health plan sponsors and banned “spread pricing,” a practice in which PBMs charge plans more than they reimburse pharmacies.
Those provisions were ultimately dropped after objections from then-Trump adviser Elon Musk prompted Trump to push for a “clean” funding bill without policy riders.
The issue is likely to resurface as advocacy groups representing physicians, pharmacies and patients continue pressing for action. According to the Congressional Budget Office, the proposed PBM changes would have generated roughly $5 billion in savings — funds that could help offset other health care priorities.
Crapo and Senate Finance Committee ranking member Ron Wyden, D-Ore., reintroduced a bipartisan PBM reform package in December. “It’s long past time to go after middlemen who are making Americans’ prescription drugs more expensive,” Wyden said.
Other Health Care Priorities
Congress may also revisit a long-term fix for Medicare telehealth flexibility. Pandemic-era policies dramatically expanded access to telehealth services, but lawmakers have repeatedly relied on short-term extensions rather than permanent reforms. That stopgap approach resulted in a temporary lapse earlier this year during a government shutdown, cutting off access for millions of Medicare beneficiaries until funding was restored.
Another potential area of focus is Medicare reimbursement for outpatient services at hospital-owned facilities. Currently, Medicare pays higher rates for services provided in hospitals than in independent clinics. Legislation to equalize payments for drug administration services passed the House in 2023 but stalled in the Senate.
The issue has gained renewed attention after the Trump administration finalized a rule in November addressing the disparity, and lawmakers are considering whether additional legislation is needed to build on that effort.
2026 Primary Races on the Federal Level
The primary election is only two-and-a-half months away. That means that voters will soon face an onslaught of political ads on their TV’s, radio, mailbox, and electronic devices. There are a number of races of interest so be ready.
Senator Dick Durbin’s decision to retire set the political dominoes in motion and opened the door for a combined 17 Democrats and Republicans to run to replace him.
In the race to replace Rep. Danny Davis, 13 Democrats are running in the 7th District primary. Rep. Jan Schakowsky’s 9th District has drawn interest from 17 candidates. With Reps. Robin Kelly and Raja Krishnamoorthi giving up their seats to run for the U.S. Senate, Kelly’s 2nd district has 10 Democrats in the primary, and there are another eight in Krishnamoorthi’s 8th District.
A little closer to home, Rep. Lauren Underwood (14th District) faces no primary competition on the Democrat side. Two Republicans will square off in March – James Marter and Gary Vician.
Notable New Laws for 2026
Pharmacy Benefit Managers (HB1697): PBMs are prohibited from engaging in spread pricing and steering covered individuals to specific pharmacies, while they must remit 100% of rebates to health plan sponsors or individuals. Requires PBMs to pay a $15 fee per covered individual to contribute to the Prescription Drug Affordability Fund. This fund will support access to pharmacy services in underserved areas.
Grocery Tax Repeal (HB3144): Repeals the statewide 1% grocery tax. Allows local municipalities to impose their own 1% grocery tax (of which Joliet has completed).
AI Use in Hiring (HB3773): Provides that employers cannot use artificial intelligence (AI) that has the effect of subjecting employees to discrimination on the basis of protected classes. Requires employers to provide notice to employees when AI is used for employment purposes, explaining its purpose.
Road Safety and Fairness Act (HB1226): Raises the mandatory road test age from 79 years old to 87 years old. Adds provisions for reporting family members with medical conditions affecting driving ability. It takes effect July 2026.
Nursing Mothers (SB212): Requires employers to provide paid break time to nursing mothers so they may express or “pump” breast milk for their child.
Gym Membership (SB314): Requires a physical fitness center to clearly disclose any change in the cost of or reduction in benefits to a customer’s gym membership at least 60 days before the automatic renewal of the membership.
Business Attraction Prime Sites Grants
The intent of this program is to assist companies with large-scale capital investment projects that commit to significant job creation for Illinois residents as they relocate or expand operations within Illinois. Business Attraction Prime Sites grants can encompass a wide range of economic development projects and may include infrastructure and capital equipment purchases that will result in job creation in the state of Illinois.
Eligible Applicants: See application guidelines for complete eligibility requirements.
Application Deadline: June 30, 2026
Invite to Participate in the City of Joliet Comprehensive Plan Workshops
As part of the City’s Comprehensive Plan initiative, you are invited to attend a series of upcoming workshops focused on key topics that will guide Joliet’s growth and development.
Workshop Schedule
Location: Joliet City Hall – 2nd Floor Council Chambers
Time: 6:30 PM – 8:00 PM
- Thursday, January 8 – Utilities & Infrastructure
(Water, sewer, stormwater, energy, and telecommunication systems) - Wednesday, January 14 – Open Space & Environment
(Park access, river corridors, habitat protection, environmental hazards, green infrastructure) - Wednesday, January 21 – Arts, Culture & Heritage
(Neighborhood character, historic preservation, cultural celebration, public art, events & festivals) - Monday, January 26 – Economic Development
(Commercial corridors & areas, business, industry & job diversification, business support, workforce pathways) - Tuesday, January 27 – Land Use & Future Development
(Character areas & neighborhoods, new development & design, reinvestment corridors, community assets)
Why Attend?
Learn where the city is in the planning process
Dive deep into specific topic areas
Share your ideas and priorities for Joliet’s future
Pre-registration is encouraged!
www.joliet.gov/comprehensiveplan
Questions? Reply to this email or contact us at comprehensiveplan@joliet.gov
Business Owners Survey from the University of Chicago
We’ve worked in the past with Dr. Morrissette from the University of St. Francis who is working with the University of Chicago Booth School of Business to conduct a survey to collect
information from privately held/family-owned company owners and executives about the options business owners consider for the ownership transition of their business such as:
– keeping the company and having a family member succeed as the top executive
– selling the company to the non-family management team
– sell all or a portion of the company to outside investors such as a private equity fund, family office or individual investors
The information collected in this survey is confidential and for academic research only – it will be helpful in understanding the intentions and process used by private/family-owned businesses to provide insights and recommendations for assisting family/privately-owned businesses with these important issues.
Your responses will be anonymous, confidential and be submitted directly to the University via the link below.
Please take a few minutes to complete this brief survey
https://chicagobooth.az1.qualtrics.com/jfe/form/SV_beIFPtPtKGZEw74
Also, please feel free to forward this email to any other privately held business owners or executives so their input can also be included.
Special thanks from:
Dr. Stephen G. Morrissette
Visiting Professor of Strategic Management
Booth School of Business
The University of Chicago
stephen.morrissette@chicagobooth.edu
https://www.chicagobooth.edu/faculty/directory/m/stephen-morrissette
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct