The grind of divided government has lowered legislative expectations in the 118th Congress. Yet, while lawmakers are bitterly divided on many topics, there appear to be areas for compromise on Capitol Hill.

When Democrats controlled all three branches of government, they were able to usher through legislation such as the Inflation Reduction Act and a bipartisan bill on gun control. That kind of big-picture legislation isn’t likely to make it through both chambers, but several bipartisan efforts are gaining traction.

HOUSE CONDEMNS CHINA'S 'BRAZEN SURVEILLANCE' FOLLOWING SPY BALLOON INCIDENT

Confronting China

The House of Representatives passed a resolution at the beginning of this month, condemning China for its “brazen violation of United States sovereignty” after the military shot down a Chinese surveillance balloon and three unrelated aerial craft. The incidents highlighted bipartisan concerns over China’s surveillance and military capabilities. It’s still unclear how lawmakers in the U.S. Senate will respond, but lawmakers are looking into dozens of anti-China trade and foreign policy provisions.

The Foreign Relations Committee’s top two senators are ironing out details for a bill that would challenge China’s economy by strengthening U.S. competitiveness. Lawmakers who lead the Senate House Armed Services Committees are also sounding the alarm over China’s military and nuclear expansion to address those concerns in annual defense legislation.

Challenging Russia

A bipartisan group of senators is trying once again to pass a bill requiring the State Department to designate the Wagner Group, a Russian paramilitary outfit, as a foreign terrorist organization. The private army group has become prominent as it fights alongside Russia's military while the country invades Ukraine.

Lawmakers ran out of time to pass the legislation last session, but the bill has bipartisan support in both chambers. The measure would go a step further than the action from the Treasury Department last month that designated the Wagner Group as a transnational criminal organization responsible for widespread human rights abuses.

A delegation of lawmakers attended the Munich Security Conference, sending a strong message of support for Ukraine and marking the one-year anniversary of the Russian invasion.

SENATORS PUSH TO DESIGNATE RUSSIA'S WAGNER GROUP AS A TERRORIST ORGANIZATION

Prescription drugs

Now that Medicare beneficiaries are paying a maximum of $35 a month on life-saving insulin, President Joe Biden urged Congress to pass the same benefit for privately insured Americans as well. The effort was voted down in the last session of Congress when it was part of the Democrats’ sweeping climate and economic package.

The move was expected after a decision by the Senate parliamentarian, who decided the insulin provision was not compliant with the chamber’s budget rules. Even though the vote failed, seven Republicans voted with Democrats to advance the provision, which could indicate enough support for the measure if it were introduced during this session.

The leaders of the Senate Commerce Committee, Sens. Maria Cantwell (D-WA) and Chuck Grassley (R-IA) reintroduced legislation to highlight unfair or deceptive tactics used by pharmacy benefit managers. There are also ongoing discussions in the House on that front. Lawmakers are discussing tweaking patent laws for generic drugs as well in an effort to lower prices and create more options for consumers.

Tech regulation

There is bipartisan support to pass legislation to protect children online. A number of bills on the matter were introduced last year with support from lawmakers on both sides of the aisle, including the Children and Teens’ Online Privacy Protection Act and the Kids Online Safety Act.

This legislation would have expanded federal safeguards for young users' activities on digital platforms. One bill sets rules for how and where data can be shared. The other would require apps to create stricter safety measures for users under 16 and would build parental supervision tools and dedicated channels to report harm. These bills would have been the first to update children’s protections online since 1998.

While these bills had bipartisan support and passed out of committee, they never received a floor vote amid fierce industry opposition. However, Sen. Dick Durbin (D-IL), chairman of the Senate Judiciary Committee, believes lawmakers could reach an agreement during this session.

Drug sentencing reform

Legislation that would eliminate the federal crack and powder cocaine sentencing disparity could gain traction in this session. Sens. Cory Booker (D-NJ) and Dick Durbin (D-NJ), and Reps. Hakeem Jeffries (D-NY) and Kelly Armstrong (R-ND) recently introduced legislation that would eliminate the gap in sentences between crack and powder cocaine and apply it retroactively to those already convicted or sentenced.

Last session, a similar bill passed in the House with strong bipartisan support, including from now-Speaker Kevin McCarthy (R-CA), but it did not pass in the Senate. There’s hope the measure could gain traction in this session.

Crypto

Discussions are going on in both chambers about regulating cryptocurrencies. Sen. Sherrod Brown (D-OH), the chairman of the Senate Banking Committee, sent a letter to Treasury Secretary Janet Yellen last year in an effort to work toward a regulatory framework.

Sen. Elizabeth Warren (D-MA) is trying to build support behind a bill that would have sweeping implications for the industry, with tougher anti-money laundering restrictions, including requirements that more crypto providers verify customer identities. The Massachusetts senator is working with Sen. Roger Marshall (R-KS), and they are attempting to recruit more progressives and conservatives.

The Biden administration in January called for Congress to step up efforts to regulate the cryptocurrency market. Officials warned it would be a “grave mistake” to enact legislation that would deepen ties between crypto and traditional finance.

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Must-pass bills

Lawmakers have a laundry list of bills that must get accomplished. They must raise the nation’s borrowing limit, for example. The Bipartisan Policy Center estimates the federal government could reach its statutory debt limit as soon as the summer or early fall of 2023. Additionally, lawmakers must pass government funding past September, a Federal Aviation Administration reauthorization, and the farm bill.