Congress Chooses New Leadership: Both houses of Congress returned to Washington this week to begin the Lame Duck session of the 119^th Congress. The first order of business for Republicans was electing a leadership team for the 120^th Congress. In the House, Rep. Jim Jordan (R-OH) edged out current Majority Leader Steve Scalise (R-LA) for the Minority Leader spot. Rep. Tom Emmer (R-MN) will be the Minority Whip and Rep. Lisa McClain (R-MI) will be the GOP Conference Chair. In the Senate, current Majority Leader John Thune (R-SD) will be the Minority Leader and Senator John Barasso (R-WY) will be the Whip.

Democrats will hold their leadership elections next week. In the House, current Minority Leader Hakeem Jeffries (D-NY) will become Speaker and current Minority Whip Katherine Clark (D-MA) will be elected Majority Leader. Rep. Pete Aguillar (D-CA) will fill the third highest ranking spot as Caucus Chair. In the Senate, Minority Leader Chuck Schumer (D-NY) will likely ascend to Senate Majority Leader, although Senator Chris VanHollen announced yesterday that he is challenging Schumer for the spot. Senator Brian Schatz (D-HI) will move into the Whip position. For the Chair of the Steering and Policy Committee-the 3^rd ranking spot, Senators Elizabeth Warren (D-MA) and Cory Booker (D-NJ) have both expressed interest.

In committee leadership news, Rep. Don Davis (D-NC) has announced that he is running to chair the House Agriculture Committee. Both Representatives Shontel Brown (D-OH) and Jim Costa (D-CA) are also running. Speculation is that it is Brown’s race to lose, but Rep. Davis won his reelection in a challenging redrawn district and Members may be inclined to support him. He is also rumored to be interested in a Senate bid next cycle against Sen. Ted Budd (R-NC) and the House Agriculture chairmanship would be a powerful springboard for that effort. In the Senate, we still believe that Senator Michael Bennet (D-CO) will be the next Senate Agriculture, Nutrition and Forestry Committee Chairman. Senator-elect Sherrod Brown (D-OH) is interested in the slot, but that would necessitate leadership restoring his seniority, which would break from Caucus rules. However, Brown will have to run for reelection again in 2028 and giving him a leadership position on the Agriculture Committee would help in that effort. Senate leaders may seek a middle ground and slot him onto the Senate Appropriations Committee.

On the Republican side, current House Natural Resources Committee Chairman Bruce Westerman (R-AR) announced this week that he would not be seeking a waiver to continue in his leadership role on the panel. Current House Agriculture Committee Chairman Glenn Thompson (R-PA) has requested a waiver but no decision by the House GOP Steering Committee has been made.  

Permitting Reform Still Alive: The Bipartisan American Affordability and Jobs Act (BAAJA), a significant effort to reform permitting rules that impact the hardwood industry, cleared a couple of critical procedural hurdles on the Senate floor earlier this week. The bill (H.R. 2347) will be considered next week, and there may be additional amendments offered during Senate floor consideration.

The underlying text is now a 494-page manager's amendment that was unveiled Nov. 7. The comprehensive measure covers, among other items, the following areas:

• National Environmental Protection Act (NEPA) Rewrite: Narrows what counts as a major federal action, expands categorical exclusions (including for transmission and pipeline work on existing routes) and lets a state or tribal review satisfy NEPA requirements. It also tightens judicial review. NEPA and Clean Water Act §404 challenges generally must be filed within 150 days, by someone who raised the issue during public comment and tied to actual or imminent direct harm, with substantial deference to agencies.
• Permit Certainty: For projects holding all their federal permits, agencies cannot revoke, suspend or materially change a permit in effect on or after Nov. 6, 2026, except in listed cases (court orders, material violations, fraud or urgent new hazards). Energy and critical-minerals permits that do not need environmental review would receive a one-year issuance deadline, with a court-petition path if an agency misses it.
• Other Environmental Statutes: Narrows Clean Water Act, Endangered Species Act and National Historic Preservation Act (NHPA) review — the NHPA §106 changes are the main point of continuing tribal opposition, and the sponsors removed an earlier provision allowing federal intervention in state/tribal preservation-office functions.
• Transmission: The Federal Energy Regulatory Commission (FERC) would receive broader authority to permit interstate transmission lines "necessary in the national interest," generally 230 kV or more, with costs allocated at least roughly commensurate with benefits.
• Data Centers: Congress would declare it U.S. policy that data-center owners bear the full cost of the electric service and infrastructure they require, so costs are not shifted to other customers. In addition, FERC must revise its 1994 transmission pricing policy within 90 days and finalize a rule within a year.
• Energy Permitting: Removes permit requirements for onshore oil and gas drilling on nonfederal land, and accelerates renewable, geothermal, hydropower and offshore energy projects.

It is unclear whether there will be a robust amendment process next week as this measure represents a fragile balance of Republican and Democrat priorities. Complicating the path forward is ongoing opposition from tribes and environmental groups.