2026 Senate Calendar, IRS Budget, and Tax Policy Updates Affecting Insurance Market

The Senate released its 2026 calendar amid ongoing negotiations on the expiration of the Affordable Care Act's enhanced premium tax credits (eAPTCs), with limited progress reported. Congressional leaders are managing disagreements over extending the eAPTCs, key for millions of insurance marketplace consumers, with a critical vote impending but agreement unlikely soon. Meanwhile, the Senate Appropriations Financial Services and General Government (FSGG) subcommittee proposed the FY2026 budget, allocating $11.8 billion to the IRS, a slight reduction from FY2025, focusing on enforcement, taxpayer services, and operational support. Separately, the House passed two IRS-related bills aiming to enhance IRS reviews and expand the Tax Court's authority, now pending Senate consideration. Senator Todd Young requested a review of IRS guidance on cryptocurrency staking rewards, citing concerns over current income recognition and consistency. Additionally, congressional attention is on newly established child savings accounts "Trump Accounts" from the One Big Beautiful Bill Act (OBBBA), with calls for clarified IRS guidance to ensure equitable implementation. Proposals to extend and expand tax credits include a Work Opportunity Tax Credit (WOTC) extension to five years with broader eligibility and an expanded Section 529 plan covering child-care expenses at licensed facilities. Retirement-related tax reform is also underway, addressing 401(k) plan notice simplification and tax exclusions for military retirement benefits. Treasury Assistant Secretary Ken Kies highlighted forthcoming tax guidance covering diverse areas such as tip and overtime deductions, school choice credits, and corporate stock buyback taxes under the Inflation Reduction Act. Recent IRS and Treasury-issued notices provide initial regulations on Trump Accounts, new deductions for qualified tips and overtime pay for 2025–2028, and clarification on tax credits for scholarship granting organizations under Section 25F, with public comments solicited through late 2025. Other guidance covers allocation of foreign income taxes for short taxable years for foreign corporations, rules on loans secured by rural or agricultural real property, and final regulations on corporate stock repurchase taxes. Treasury plans to bar certain refundable tax credits for undocumented immigrants citing federal public benefits law, impacting EITC, child tax credits, and others. On the international front, the U.S. continues to negotiate global minimum tax rules with the OECD, pursuing a side-by-side model exempting U.S. multinationals and considering a one-year extension for the interim safe harbor. Domestic political figures expressed concerns over increases in France's digital services tax, warning of possible retaliatory actions against unfair targeting of U.S. companies. Overall, the story reflects a complex nexus of tax policy, regulatory guidance, budget allocations, and international tax negotiations that directly affect IRS operations, tax compliance, employer and individual tax credits, and insurance market implications tied to health care legislation.