With Congress deadlocked and thousands of federal workers furloughed, Bloomberg reports that prospects for a year-end deal on expiring tax provisions are looking slim.

Lawmakers on both sides of the aisle have long relied on so-called “tax extenders,” a recurring set of temporary credits renewed each year, but the current shutdown has slowed talks and deepened partisan divides. 

The funding lapse is partly tied to disagreements over the enhanced premium tax credit under the Affordable Care Act. Yet, a range of other provisions are also at stake, from incentives for hiring disadvantaged workers to tax breaks for film studios, race tracks, and tuna canneries in American Samoa. Without action, many of these will expire at the end of the year. 

Lawmakers have expressed frustration with the political climate. “This does kind of sour the soup,” said Rep. Mike Thompson (D-Calif.), who co-sponsored a bill to make the motorsports credit permanent. Others, like Rep. Lloyd Smucker (R-Pa.(, remain hopeful, pointing to last year’s bipartisan child and business tax deal as proof that cooperation is possible. 

Still, analysts say the shutdown has disrupted progress and attention in Washington. Many believe Congress may opt to delay action until 2026 and pass the extenders retroactively, as it has in previous years.