As the second session of the 119th Congress begins, lawmakers face a January 30 deadline to complete the remaining nine government spending bills ahead of a possible shutdown.
Before leaving Washington in December, House and Senate Republican appropriators reached agreement on an overall FY 2026 spending topline of each of the nine remaining appropriations bills. The legislation will determine the funding levels for Manufacturing Extension Partnership programs, career and technical education, and registered apprentices, among other workforce priorities for manufacturers.
The Senate’s FY26 Labor, Health and Human Services, and Education appropriations bill, which funds education and workforce development programs and was approved by the Committee in July, maintains level funding for the Perkins Basic State Grant program. This program is essential for providing high-quality CTE across America. The bill also allocates $2.9 billion for Workforce Innovation and Opportunity Act formula grants and $285 million for Registered Apprenticeships.
The House version of the Labor-HHS-Education appropriations bill, which was approved by the Committee in September, includes a $25 million increase in funding for Perkins and maintains level funding of $285 million for Registered Apprenticeships. However, the bill also reduces WIOA grants by $1.8 billion, eliminating funding for WIOA Adult Job Training and WIOA Youth Job Training grants.
The draft legislation released this week funding the Department of Commerce includes $175,000,000 for the Hollings Manufacturing Extension Partnership program.
We urge members to contact their Senators and Representatives now and ask them to fully fund critical job training and technical education programs as part of the FY 2026 appropriations process. With the January 30 deadline fast approaching, Congress must move beyond short-term funding measures and ensure these programs are funded at levels that meet the needs of workers, employers, and the broader economy.
Click here to contact your members of Congress TODAY and urge them to pass a FY26 spending bill that provides the resources small businesses need for training programs and raises awareness of manufacturing careers.
Senate Confirms Labor Nominees, Restoring NLRB Quorum
On December 18, 2025, the Senate confirmed a new package of labor-related nominees in an en bloc vote, advancing several key appointments across federal labor agencies. The confirmed slate includes James Murphy and Scott Mayer as members of the National Labor Relations Board (NLRB), Crystal Carey as NLRB General Counsel, and Rosario Palmieri as Assistant Secretary of Policy at the U.S. Department of Labor.
Once seated, the confirmations will restore a functioning quorum at the NLRB. The Board will consist of two Republican-nominated members—Murphy and Mayer—alongside one Democratic-nominated member, David Prouty. The presence of a quorum enables the Board to resume issuing decisions and carrying out its adjudicatory responsibilities, which had been constrained by vacancies.
Despite the restored quorum, the Board’s ability to revisit or overturn Biden-era precedents remains limited. Under current composition rules and voting dynamics, an additional Republican-nominated member would be required to form a majority capable of reversing prior decisions.
The confirmations mark a significant step toward operational stability at the NLRB and signal continued Senate activity on labor policy appointments, even as broader debates over the direction of federal labor law are likely to continue.
Appeals Court Reinstates Corporate Transparency Act
On December 16, 2025, the U.S. Court of Appeals for the Eleventh Circuit overturned a lower court ruling that had struck down the Corporate Transparency Act (CTA), concluding instead that the CTA is a valid exercise of Congress’s authority
The case—National Small Business United (d/b/a National Small Business Association) and Isaac Winkles v. U.S. Department of the Treasury, et al., No. 24-10736—challenged the CTA’s requirement that certain covered entities report “beneficial ownership” information (i.e., the individuals who exercise control over the entity or own at least 25%) to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The panel explained that Congress adopted the CTA as part of the Anti-Money Laundering Act to address the use of anonymous entities in financial crimes such as money laundering and terrorism financing.
Earlier in 2024, a federal district court in Alabama ruled that the CTA was unconstitutional, finding that Congress had gone beyond its authority by imposing these reporting requirements on businesses. That decision temporarily blocked enforcement of the law.
The Eleventh Circuit disagreed, holding that the CTA satisfies the Commerce Clause “substantial effects” framework because—by “effectively prohibiting anonymous business dealings”—it regulates economic activity with a substantial aggregate impact on interstate commerce.
The court also rejected claims that the reporting requirement violates privacy protections. It emphasized that the CTA operates like many other routine business reporting rules and includes safeguards that limit who can access the information and how it may be used.
Importantly, the court noted that an interim rule issued by FinCEN last spring remains in effect. That rule exempts domestic companies from the CTA’s reporting requirements while continuing to require certain foreign entities to report beneficial ownership information. With the appeals court’s decision, that interim regulatory framework stays in place unless and until FinCEN changes it through future rulemaking.
European Commission Issues CBAM Operational Rules and Proposes Downstream Scope Extension
On December 17, 2025, the European Commission released a comprehensive package of implementing and delegated acts aimed at operationalizing the European Union’s Carbon Border Adjustment Mechanism (CBAM) ahead of its definitive phase, which began on January 1, 2026. Together, they are intended to move CBAM from its current transitional reporting system into a fully enforceable carbon pricing mechanism aligned with the EU Emissions Trading System. CBAM imposes a carbon fee on imports under an Emissions Trading System for imports under six product categories, including, iron and steel, aluminum, cement, fertilizers, electricity, and hydrogen.
The package provides detailed guidance on several critical components, including the calculation of carbon emissions, the use of default values where direct measurement is not feasible, and the requirements for independent verification of reported data. In addition, the acts clarify the procedures for pricing CBAM certificates, as well as the processes for registry management and customs administration. Together, these finalized rules are designed to transition CBAM from its current transitional reporting system to a fully enforceable carbon pricing mechanism.
At the same time, the Commission has proposed amendments to the CBAM Regulation that would significantly expand its scope beyond the original set of basic materials—steel, aluminum, cement, fertilizers, electricity, and hydrogen—to include a broad range of downstream products. The proposal is aimed at addressing carbon leakage risks further along supply chains and strengthening anti-circumvention safeguards. If adopted, the expansion could ultimately cover roughly 180 additional product categories, including fabricated metal products, machinery, equipment, and certain vehicles and components, with a proposed implementation date of 2028.
The proposed scope expansion and the newly finalized operational rules will now be subject to review by the European Parliament and EU member states. While the implementing acts provide greater clarity for companies preparing for CBAM compliance in 2026, the downstream extension remains under negotiation and could evolve as part of the EU legislative process.