Legislative and regulatory Washington Newsletter, Q3 2026

Key takeaways

• Congress is heading into a lame-duck session on December 11, a date squarely within the post-election period and the next major fiscal deadline for government funding. The session could evolve from a routine end-of-year legislative sprint into one of the most consequential periods of policymaking in this Congress.

• The US Trade Representative (USTR) launched investigations under Section 301 of the Trade Act of 1974 into "structural excess capacity and production in manufacturing" across 15 countries and the European Union. They also initiated reviews of forced labor practices in 60 economies. So, trade policy is likely to remain uncertain heading into 2027. Ongoing litigation, retaliatory actions from trading partners, and potential congressional intervention suggest the tariff debate is far from settled.

• 2026 is also a pivotal year in state politics. Voters will elect governors in 36 states, making it one of the most consequential gubernatorial election cycles in recent history, with outcome implications that will go beyond state capitals. Governors play a critical role in shaping policy and help define each party's governing vision and can emerge as influential national figures in the next presidential cycle.