Lawmakers returned to Washington for the Second Session of the 119^th Congress last week and have a very busy legislative agenda ahead of them. Here are some of the legislative issues of interest to NEFI members that could see legislative action in 2026:

1. Appropriations & LIHEAP Funding 

The Senate is voting this week on H.R. 6938, the House‑passed minibus containing the FY26 Commerce‑Justice‑Science, Energy‑Water, and Interior‑Environment bills. If approved, it will go to the President’s desk; however, six additional appropriations bills, or a continuing resolution, must be enacted before January 30 to avoid another partial government shutdown.

Last year’s government shutdown was triggered by a disagreement on whether to extend health insurance subsidies under the Affordable Care Act (ACA). The House approved a three‑year extension last week, which is now pending in the Senate, where it faces some resistance. A bipartisan group of lawmakers are working on a compromise measure that combines a two-year extension with potential reforms. Republican leaders are also weighing a second partisan reconciliation bill – a ‘One Bill Beautiful Bill 2.0” – to enact healthcare-related tax priorities that were left out of the last bill.

NEFI is actively engaged in discussions with respect to LIHEAP funding. Both chambers’ draft FY26 Labor‑HHS‑Education bills include proposed increases: $10 million in the House and $20 million in the Senate. NEFI and its allies have already begun advocating for Fiscal Year 2027 LIHEAP funding, and we will again participate in LIHEAP Action Day this February in Washington, DC.

2. National Energy Choice Legislation 

All four NEFI-backed Energy Choice bills were reported out of the House Energy & Commerce Committee last year and now await floor consideration. This includes the Energy Choice Act (H.R. 3699), which now boasts 150 co-sponsors, and Don’t Mess With My Home Appliances Act (H.R. 4626). NEFI is working with coalition partners to continually draw up additional support. Together, these measures would ensure consumer choice across the federal, state, and local levels. Be on the lookout for legislative alerts and calls-to-action in the weeks ahead.

3. Energy Permitting Reform 

Both parties have sought to reform the permitting process, which has resulted in historic delays for both conventional and renewable energy projects and impedes modernization of the electric grid. Bipartisan conversations on comprehensive permitting reform have been underway for months, but progress has stalled. In December, Senators Sheldon Whitehouse (D‑RI) and Martin Heinrich (D‑NM), the ranking Democrats on the Environment & Public Works and Energy & Natural Resources Committees, stated that “there is no path to permitting reform if the administration refuses to follow the law.” Their remarks came after the Trump administration ordered a pause on all offshore wind construction leases due to national security concerns, including Revolution Wind in Rhode Island. NEFI will be watching closely to see if the stalemate over permitting reform can be resolved.

4. Farm Bill & NORA Reauthorization

NEFI is closely monitoring discussions related to the Farm Bill, which may include provisions impacting biofuels and could also carry a reauthorization of the National Oilheat Research Alliance (NORA). NEFI strongly supports NORA, which was last reauthorized for 10 years in the 2018 Farm Bill. Disagreements over SNAP (i.e., “food stamps”) and other issues have injected uncertainty into what historically has been must-pass bipartisan legislation. Despite this, Republican leaders remain bullish on its prospects. House Agriculture Committee Chairman Glenn Thompson (R‑PA) stated Sunday that he expects committee markup of a draft Farm Bill in late February and reaffirmed his intent get it to the President’s desk by the end of the calendar year.

5. Highway Bill

Congress reauthorized federal transportation agencies and programs for five years in the Infrastructure Investment and Jobs Act of 2021, also known as the “highway bill.” Many of these policies are poised to expire in 2026. Republican leaders have said they want a new highway bill that focuses on “traditional” support for roads and bridges, rolls back electrification provisions from the 2021 law, imposes new fees on hybrid and electric vehicles, and that provides additional regulatory relief for motor carriers and drivers. There is also talk that this legislation could be a vehicle for energy permitting reform.

For more information on these issues, email NEFI Manager of Government Affairs Liam Dotson at liam.dotson@nefi.com. A summary of top federal regulatory issues that may affect the industry in 2026 will be provided in a future issue of NEON.