The legislative outlook for 2026 centers on must-pass appropriations measures, potential debt-limit adjustments, and any reconciliation-eligible budget packages in the 119th Congress. Party control of the House and Senate determines the viability of broader policy bills, as Senate filibuster rules and House majority thresholds shape what can advance without broad bipartisan support. Traders monitor early-session committee markups, continuing resolutions, and administration priorities for signals on enactment likelihood. The November 2026 midterm elections loom as a key variable, potentially shifting majorities and compressing the window for action before any lame-duck period. Historical base rates show higher passage rates for funding and debt-related legislation compared with standalone policy initiatives.