The U.S. Congress returned to Washington on Monday, Nov. 9, 2026, with four weeks to pass a stopgap spending bill before the government’s current funding runs out on Dec. 11, days after Democrats won control of both chambers.
The deadline matters to Canada because the same lame-duck session sets the table for a Democratic House and Senate that take office on Jan. 3, while Canada and the United States are still negotiating over tariffs. Canada News Media reported on election night that CTV said U.S. tariffs on Canadian-made vehicles and parts would rise to 50 per cent if there is no deal by January 2027.
A short-term funding bill that puts off a full-year deal until Democrats are in charge is “seemingly more likely,” The Fiscal Times reported Monday. Marketplace, which also reported on the Dec. 11 deadline, quoted Henrietta Treyz, director of economic policy at Veda Partners, as saying Democrats will probably back a stopgap because they “want to hit the ground running, get their new members sworn in on Jan. 3.” She put the odds of passage at only 30 per cent, however, calling the bill a “pretty must-pass piece of legislation.”
Neither outlet gave the length or dollar amount of the bill, and Canada News Media could not confirm those details from a primary source. Treyz also said she expects Democrats not to support other Republican priorities, such as money for the war in the Middle East.
The Fiscal Times said the administration wants a large defence budget and more money for the Iran war, which it described as “massively unpopular.” It also reported that Rep. James Comer, the House Oversight Committee chair, said: “We have no idea what the strategy is moving forward in Iran.”
Maya MacGuineas of the Committee for a Responsible Federal Budget urged Congress to avoid new deficit spending before Dec. 11. “We are just one month into the new fiscal year, and astonishingly we have already borrowed $409 billion,” she said, according to The Fiscal Times, which cited an estimate from the Congressional Budget Office for October, the first month of fiscal 2027.
The agenda is crowded. The Fiscal Times reported that outgoing Rep. Thomas Massie filed articles of impeachment against Defense Secretary Pete Hegseth on Monday, with eight charges tied to the Iran war and other military actions. Republican leaders must hold a floor vote within two legislative days or move to kill the resolution, it said, and a motion to kill would need a majority. House Democratic Leader Hakeem Jeffries called Hegseth “the most unqualified secretary of defense in American history” who “has got to go.” This is a single-outlet account of the filing, and the Marketplace report did not mention the impeachment.
The National Defense Authorization Act, the annual Pentagon policy bill, is also unfinished. The Fiscal Times said it has passed 65 straight years. Todd Harrison, a senior fellow at the American Enterprise Institute, told Marketplace the bill has about a 50 per cent chance of passing this year.
Both outlets also pointed to a possible Republican-only tax and spending bill that could move under special budget rules. The Fiscal Times said the House Freedom Caucus has asked Speaker Mike Johnson and Senate Majority Leader John Thune for a package that cuts at least $1 trillion in spending.
Republican leaders vote Tuesday, Nov. 10, on their next leadership slates, The Fiscal Times reported, with Steve Scalise and Jim Jordan competing for the House leadership post. It said Thune is favoured to become Senate minority leader.
The staffing at the White House is also changing. As we reported, Stephen Miller took over as chief of staff on Monday, replacing Susie Wiles. The Fiscal Times reported that Jeffries said he has “zero interest in working with that kind of individual,” calling Miller “a stone-cold racist.” Miller did not comment in the reports Canada News Media reviewed.
What happens next: Congress must pass a funding bill by Dec. 11 to avoid a shutdown, and the new Congress is sworn in Jan. 3. For the trade talks, see our reporting on what the Democratic Senate means for Canada, Prime Minister Mark Carney’s comments on restoring free trade and Miller’s appointment.
Via The Fiscal Times and Marketplace.
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