Congress is racing to tie up some critical loose ends this week before gaveling out the 118th Congress and leaving town for the rest of the year. Primary among them is funding the federal government. House and Senate negotiators finally forged a deal late Tuesday on a continuing resolution (CR) to extend federal government operations past this Friday and into mid-March of next year. Also included in the 1,547-page measure is at least one key ABMA policy deliverable and a couple of other notable policy provisions. They are:

• Reauthorization of WIOA:
  • The CR includes provisions of the Stronger Workforce for America Act (H.R. 6655), which updates the Workforce Innovation and Opportunity Act (WIOA). This comprehensive statute underpins all of the country’s workforce development programs and has not been reauthorized since 2014. Among other things, the bill would:
    • Dedicate 50% of the adult and dislocated worker funding toward upskilling workers through “individual training accounts” (ITAs), on-the-job learning, and wrap-around supports, while redirecting an existing funding stream toward ITAs for displaced workers.
    • Prioritize employer-led initiatives that equip workers with the skill sets to fill jobs in critical industries and help the currently employed workforce upskill to avoid displacement and advance their careers.
    • Streamline the “eligible training provider list” to focus on outcomes and ensure eligible programs are aligned with the skill and hiring demands of employers.
    • Strengthen and fully implement the performance accountability system in the law to hold states and local workforce boards accountable for achieving positive labor market outcomes for program participants.

Working to reauthorize WIOA has been an ABMA policy priority for the last couple of years and was a key “ask” during ABMA’s Advocacy Day in April.

• A one-year extension of the Farm Bill: This action was essential as the House and Senate could not come together this year on a broader five-year reauthorization measure. As part of this extension, farmers and forest landowners will receive significant funding for relief from natural disasters and wildfires. For forest landowners, the measure includes a $356.5 million line item to help them with hurricane damage and wildfire losses. The one-year extension buys time for new leadership in the 119th Congress to forge consensus on a broader five-year bill.
• A one-year delay in implementation of reporting requirements under the Corporate Transparency Act (CTA): The CTA took effect at the beginning of 2024, and Beneficial Ownership Information reports for companies formed prior to Jan. 1, 2024, are due Jan. 1, 2025. If the CR is enacted in its current form, this deadline would be pushed back one year. The CTA is an anti-money laundering statute that requires small businesses with less than $5 million in revenue and fewer than 20 employees to file reports on their ownership. Fines for not filing total almost $600 per day, and noncompliance could result in a prison sentence.

Unfortunately, as soon as the “deal” was unveiled, Republicans began to criticize it. Elon Musk fired up an X campaign against it, and then President-elect Trump vowed that he would oppose any Republican that voted for it. House Speaker Mike Johnson (R-La.) is now huddling with the president-elect and Vice President-elect Vance to map out an alternative path forward. Government funding expires at midnight on Friday. Missing from the talks are Democrats, whose votes will likely be needed in the House and most definitely in the Senate. The situation is fluid.

Additional House Leadership Developments

Last week, the Republican Steering Committee gave Rep. Tim Walberg (R-Mich.) the nod to head the House Education and Workforce Committee next year. Walberg prevailed over Rep. Burgess Owens (R-Utah) for the top spot on this key panel. In his social media posts after receiving the news, incoming Chairman Walberg emphasized that addressing the workforce challenges of U.S. employers will be one of his key objectives.

In the race for ranking member of the House Agriculture Committee, Rep. Angie Craig (D-Minn.) beat out Rep. David Scott (D-Ga.), the current ranking member, and Rep. Jim Costa (D-Calif.). Craig’s pitch that the party needs more leaders from middle parts of the country resonated with the Democratic Steering and Policy Committee.

In another important ranking member race, Rep. Jared Huffman (D-Calif.) defeated Rep. Melanie Stansbury (D-N.M.) to become the top Democrat on the House Natural Resources Committee.

Looking Ahead to 2025: A New Administration and the 119th Congress

As expected, the congressional calendars for the 119th Congress were released in early December, and based on the number of days that Congress has scheduled to be in Washington, 2025 is shaping up to be a busy year. The typical schedule for members of Congress involves arriving in D.C. late Monday or early Tuesday, attending committee hearings and markups, fundraising, casting votes, and heading back home Thursday afternoon.

However, the new calendars indicate a different pace next year. Several Fridays show both chambers in session, and incoming Senate Majority Leader John Thune (R-S.D.) has advised colleagues to prepare for weekend work as well. While this remains to be seen, incoming leadership has identified significant and challenging policy issues to address, including:

• Tax Policy: Many are dubbing 2025 the “Super Bowl of Tax” or “Taxmageddon.” ABMA priorities include restoring the full expensing tax benefit, reviving and extending the research and development tax credit, and extending the 20% tax deduction for S corporations and other pass-through entities, which is set to expire at the end of 2025.
• Farm Bill: Political disagreements prevented a new Farm Bill from being enacted in 2024. However, new leadership, particularly Sen. Amy Klobuchar (D-Minn.) and Sen. John Boozman (R-Ark.) in the Senate and Rep. Angie Craig (D-Minn.) in the House, provides hope for progress. ABMA will continue to advocate for provisions supporting innovative wood product manufacturing and forestry workforce development.
• Trade: President-elect Trump has emphasized imposing tariffs to address trade imbalances, targeting countries like China, Mexico, Canada, and members of the European Union. ABMA is monitoring these developments closely, as broad tariffs could pose economic challenges.

While these are just a few of the critical policy areas expected to dominate 2025, the ABMA remains committed to advancing priorities that support its members and their industries.