January 5, 2026

Congress has reconvened for 2026, and Speaker Mike Johnson finds himself grappling with familiar problems that threaten to overshadow his leadership in the new year. The legislative landscape is fraught with issues ranging from health care disputes and the Jeffrey Epstein case, to GOP infighting over stock trading regulations and another potential government shutdown.
Johnson's agenda includes rallying Republican members around initiatives to reduce housing costs and exposing public-benefits fraud, particularly in light of allegations in Minnesota. However, the GOP is also energized by President Trump's forceful removal of Venezuelan leader Nicolas Maduro, adding another complex layer to the party's internal dynamics.
One of the most immediate challenges for Johnson is the expired Obamacare tax credits. The House is poised to vote on extending these subsidies, pushed by a faction of Republicans who have sided with Democrats. Although a three-year extension might pass the House, it faces a dead end in the Senate, where Majority Leader John Thune has signaled no movement forward, sparking talks among moderates for a potential compromise.
The internal GOP battles extend to health care reform, where Trump advocates for redirecting funds to health savings accounts, conflicting with proposals to provide direct financial relief to Americans facing high health care costs. This division underscores the broader challenges Johnson faces in uniting his party on major issues.
Adding to Johnson's woes are the ongoing revelations from the Epstein case files. Despite a congressional mandate for full disclosure, the Department of Justice has been criticized for slow and incomplete releases, prompting calls for accountability from both Republican and Democrat lawmakers.
On the appropriations front, there is a glimmer of hope. Key negotiators are reportedly close to a deal on a funding package that could avert another government shutdown. This comes as both House and Senate leaders express reluctance to face the political fallout of failing to fund the government.
As the House tackles these pressing issues, Johnson is also pushing for legislative action on housing affordability, a key concern for the upcoming midterms. This includes efforts to streamline regulations on manufactured housing and adjust energy standards, which are set to be voted on this week.
Despite Johnson's optimistic outlook for the new year, as expressed in a recent Wall Street Journal op-ed, the reality of deep-seated party divisions and challenging national issues suggests a turbulent path ahead. As 2026 unfolds, Johnson's leadership will be crucial in navigating these complex political waters, with the GOP's unity and effectiveness at stake.