As Congress races to wrap up its 2024 legislative calendar, the flurry of last-minute negotiations and must-pass bills will have implications far beyond Capitol Hill. The decisions - or indecisions - made in the final days of the session will shape the executive branch’s priorities in 2025, influencing everything from regulatory agendas to the scope of executive orders.
Congress’s actions in its final week serve as an indicator for federal agencies, particularly on issues where legislators have been unable to reach consensus. When lawmakers leave critical gaps, the executive branch often steps in to fill the void, leveraging its rulemaking authority to advance key priorities. Conversely, when Congress provides clear legislative direction, agencies may shift their focus to implementation. The following areas are where the last week of Congress will impact the incoming administration in 2025:
Federal Funding Levels: The outcome of ongoing appropriations negotiations will dictate the funding levels for federal agencies in 2025. Another continuing resolution means that agencies’ spending levels will remain in limbo as Congress puts together an omnibus (or another short-term spending bill) in March. CRs often limit agencies’ ability to launch new initiatives and bring the threat of a shutdown, which could impact new priorities in the incoming Trump administration.
Executive Orders to Fill Legislative Gaps: When Congress fails to pass comprehensive legislation on pressing issues, the executive branch often steps in. Efforts around AI regulations, Big Tech regulations, or agricultural and food security issues could see additional agency action in the absence of laws passed. While we will see a flurry of executive orders at the beginning of the Trump administration, future Eos and Secretarial Orders will come up if a pressing issue needs to be addressed without Congressional action.
Regulatory Timelines and Priorities: Agencies rely on Congress for guidance on which regulatory issues to prioritize. For example, if Congress passes legislation targeting AI governance or cryptocurrency regulation, federal agencies will need to translate those laws into actionable rules. On the other hand, a lack of legislative direction could lead to delays in rulemaking.
As Congress punts most of its authorizing priorities to next year, agencies will have more control over enforcement priorities. This means stakeholders are best positioned to engage early with agencies and anticipate early Executive Orders to identify how agencies will bypass legislative inaction.
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