--- title: "Capitol Insights: What the 2026 midterm elections mean for WOTC" description: Explore what the 2026 midterm elections mean for WOTC renewal, congressional leadership and potential legislative action before year-end. image: https://maximus-tces.com/hubfs/capitol-insights-featured-week26-.jpg --- [![maximus-logo](https://maximus-tces.com/hubfs/Logo/maximus-logo.svg) ![maximus-logo](https://maximus-tces.com/hubfs/Logo/maximus-logo.svg)](https://maximus-tces.com) [![maximus-logo](https://maximus-tces.com/hubfs/Logo/maximus-logo.svg)](https://maximus-tces.com) - [Tax Credits](https://maximus-tces.com/tax-credits) - [Work Opportunity Tax Credit (WOTC)](https://maximus-tces.com/work-opportunity-tax-credit) - [Location-based Tax Incentives](https://maximus-tces.com/location-benefits) - [I-9 Management](https://maximus-tces.com/i-9-management) - [MAXOutreach](https://maximus-tces.com/maxoutreach) - [About Maximus](https://maximus-tces.com/about) - Resources - [Insights](https://maximus-tces.com/insights) - [Case Studies](https://maximus-tces.com/case-studies) - [WOTC Savings Calculator](https://maximus-tces.com/wotc-calculator) - [I-9 Potential Fines Calculator](https://maximus-tces.com/i-9-potential-fines-calculator) - [Tax Credits](https://maximus-tces.com/tax-credits) - [Tax Credits](https://maximus-tces.com/tax-credits) - [Work Opportunity Tax Credit (WOTC)](https://maximus-tces.com/work-opportunity-tax-credit) - [Location-based Tax Incentives](https://maximus-tces.com/location-benefits) - [I-9 Management](https://maximus-tces.com/i-9-management) - [MAXOutreach](https://maximus-tces.com/maxoutreach) - [About Maximus](https://maximus-tces.com/about) - Resources - [Insights](https://maximus-tces.com/insights) - [Case Studies](https://maximus-tces.com/case-studies) - [WOTC Savings Calculator](https://maximus-tces.com/wotc-calculator) - [I-9 Potential Fines Calculator](https://maximus-tces.com/i-9-potential-fines-calculator) [Contact an expert](https://maximus-tces.com/contact) # Capitol Insights: What the 2026 midterm elections mean for WOTC Nov 5, 2026 ![Capitol Insights: What the 2026 midterm elections mean for WOTC](https://maximus-tces.com/hubfs/capitol-insights-featured-week26-.jpg) Capitol Insights examines the latest developments in Washington and what they could mean for the future of the Work Opportunity Tax Credit (WOTC). *Latest update* Our previous update examined how the December 11 government funding deadline and a shortened congressional calendar could create an opportunity for WOTC renewal through year-end tax legislation. [Read the previous update .](https://maximus-tces.com/insights/capitol-insights-december-deadline-wotc-extension) --- ## At a glance: - The Nov. 3 midterm elections shifted control of both chambers of Congress to Democrats, bringing new leadership to the congressional tax-writing committees in 2027. - WOTC remains expired, with bipartisan legislation pending and congressional action still required to restore the credit. - The remaining 2026 legislative session presents an opportunity for lawmakers to consider WOTC renewal, supported by recent advocacy from employers and workforce organizations. --- The November 3 midterm elections brought a significant shift in congressional leadership, with Democrats winning control of both the U.S. House of Representatives and Senate. As lawmakers prepare for the transition, employers and workforce stakeholders are watching closely to understand what the results could mean for the future of the Work Opportunity Tax Credit ([WOTC](https://maximus-tces.com/work-opportunity-tax-credit)). While the election changes the political landscape in Washington, it does not directly change WOTC's legislative status. The credit remains expired for new hires made after December 31, 2025, and congressional action is still required to restore the program. Incoming House Ways and Means Chairman Richard Neal has expressed a desire to complete this year's legislative business before the new year. He and incoming Senate Finance Chairman Ron Wyden also want to allow sufficient time to organize the 2027 committees and finalize committee assignments. This could create an opportunity for lawmakers to address outstanding tax legislation, including a potential WOTC extension, before the end of 2026. ## A new Congress, but continued bipartisan support WOTC has historically received support from lawmakers in both political parties because of its focus on encouraging employment among individuals who face barriers to entering the workforce, including veterans, SNAP recipients, and other eligible populations. That bipartisan foundation is reflected in the Improve and Enhance the Work Opportunity Tax Credit Act (H.R. 6231/S. 3265), introduced in November 2025. The legislation includes Republican and Democratic sponsors and would extend WOTC through December 31, 2030, while making several changes intended to strengthen the hiring incentive. The election results will change which party controls the congressional agenda and the leadership of the House Ways and Means and Senate Finance committees beginning in January 2027. These committees play central roles in federal tax legislation, including consideration of WOTC. However, a change in committee leadership does not necessarily indicate a change in support for the credit. WOTC's future will depend on the priorities of the incoming Congress, continued bipartisan engagement, and whether lawmakers identify a legislative opportunity to advance an extension. ## The lame-duck session remains an important opportunity Before the newly elected Congress takes office, the current Congress will return to Washington for its post-election legislative session. This period offers an opportunity for lawmakers to address outstanding priorities, including government funding and potentially certain expired tax provisions. For WOTC, the timing is particularly relevant. On October 30, a coalition of 474 employers and organizations sent a letter to congressional tax-writing committee leadership urging lawmakers to extend the credit during the lame-duck session. The coalition, which includes FMI, The Food Industry Association, supports incorporating WOTC extension and modernization provisions into a year-end legislative package. Although there is no guarantee that Congress will consider a tax package containing WOTC, the bipartisan legislation and recent employer advocacy provide an established framework for potential action before the end of 2026. ## What employers should know For employers that have historically participated in WOTC, the election results do not require immediate changes to hiring practices. However, the program's continued expiration makes it important to distinguish between existing law and proposed legislation. Employers should remain aware of several considerations: - WOTC remains expired for new hires. No extension has been enacted restoring the credit for employees hired after December 31, 2025. - Retroactive renewal remains possible. Pending legislation proposes restoring the credit for qualifying 2026 hires, but the final effective dates and requirements would depend on congressional action. - Documentation remains important. Employers should evaluate whether continuing eligibility screening and maintaining relevant records is appropriate while Congress considers an extension. - Legislative developments warrant continued attention. Both the remaining 2026 congressional session and the beginning of the 120th Congress could affect the program's future. ## Looking ahead The 2026 midterm elections represent a change in congressional leadership, but they do not resolve the future of WOTC. The program enters the post-election period with bipartisan legislation pending, an active coalition of employer and workforce organizations seeking renewal, and an opportunity for congressional consideration before year-end. Understanding the sense of urgency, the members of Congress are working together on a bipartisan bill that includes WOTC. Maximus will continue monitoring congressional activity and providing updates as lawmakers consider the future of WOTC.   [![wotc-calculator-CTA-banner](https://no-cache.hubspot.com/cta/default/457810/interactive-221393987941.png)](https://maximus-tces.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJtwHz%2BfR05GJPNlikDSKj32sineOBhfY2ONX5EWp9BUdLBdzf%2BFRCxTiXsot0E2tMllz22D1jn3r0ZFWUQStsTB0ICsGtCpb8batneOOELgZSHVqEH6Xf%2F0ZBnsDEJSPrVLkaSPZryHs4ZoNHmDOzs8zMtZ5vG%2BZbCAjSrtKsyLNZMJV23%2BBZSmJGMjsRafsXzFa6EU2y8nDBKRqM%3D&webInteractiveContentId=221393987941&portalId=457810) **Topic:** [WOTC,](https://maximus-tces.com/insights/topic/wotc) [Capitol Insights](https://maximus-tces.com/insights/topic/capitol-insights) ![Kitty Leggieri](https://maximus-tces.com/hs-fs/hubfs/KL%20Headshot.jpg?width=50&height=50&name=KL%20Headshot.jpg) Kitty Leggieri As Vice President, Kitty is responsible for business development and strategy, partnering with employers to administer the Work Opportunity Tax Credit Program, and serving on the board of the National Employment Opportunity Network (NEON). [![maximus-logo-white](https://maximus-tces.com/hubfs/maximus-logo-white.svg)](https://maximus-tces.com) At Maximus Tax Credit and Employer Services, we’ve been helping businesses maximize tax credits and employer incentives since 1978. We specialize in administering the Work Opportunity Tax Credit (WOTC) and other federal, state, and local tax credit programs across all 50 states. Through our comprehensive employer services, we ensure compliance, support workforce needs, and optimize every opportunity to increase your tax credit potential. ###### Services - [Tax Credits](https://maximus-tces.com/tax-credits) - [Work Opportunity Tax Credit (WOTC)](https://maximus-tces.com/work-opportunity-tax-credit) - [Location-based Tax Incentives](https://maximus-tces.com/location-benefits) - [I-9 Management](https://maximus-tces.com/i-9-management) - [MAXOutreach](https://maximus-tces.com/maxoutreach) ###### Resources - [Case Studies](https://maximus-tces.com/case-studies) - [Insights](https://maximus-tces.com/insights) ###### Find out how many WOTC credits you're eligible for. [![](https://maximus-tces.com/hubfs/wotc-calculator-icon-01-1.svg)Try our free calculator »](https://maximus-tces.com/wotc-calculator) ###### Estimate your potential I-9 fines. 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