As Congress returns for the second session of the 119th Congress in 2026, several major federal issues will shape the business environment for used vehicle dealers nationwide.
Federal government funding deadline
Lawmakers face a critical deadline to finalize government funding by January 30, 2026, to avoid a federal government shutdown. Extended negotiations could affect federal loan programs, regulatory work and overall consumer confidence – factors that directly influence vehicle demand and financing activity.
Affordable Care Act subsidy extensions
Enhanced health insurance subsidies under the Affordable Care Act, originally extended through the Inflation Reduction Act, are scheduled to expire at the end of 2025 unless Congress acts, impacting businesses and individuals that rely on these premium tax credits for affordable coverage. The renewal of the health care subsidies will be a major policy debate next year, with potential cost and workforce implications for employers.
Trade and tariffs
The Trump Administration’s 2026 trade agenda will continue to be centered on higher tariffs and a tough stance toward major trading partners. Framed as part of an “America First” push to reshore production and reduce reliance on foreign supply chains, we may see a Republican-controlled Congress prepare oversight hearings and potential legislation on tariff levels, targeted countries, and downstream effects on prices and domestic industries.
Right to Repair hearing
The House Energy and Commerce Committee plans to hold a hearing early in the year focused on Right to Repair legislation. Dealers and repairers alike will be watching closely, as the discussion may shape future access to vehicle diagnostic data and repair tools. NIADA continues to support solutions that balance consumer choice, data security, and fair competition within the aftermarket.
2026 Midterm Elections
With midterm elections approaching in November 2026, legislative activity may slow as political attention shifts to campaigning in the late summer and early fall.
