Congress returned to Washington in 2022 facing a difficult legislative environment. The narrow margins in both chambers were already a huge impediment to passing legislation, but the fact that 2022 is a midterm election year only exacerbates the political tensions.

The midsummer focus in Washington is on whether lawmakers can find a path forward on the president's economic agenda. A precarious bipartisan deal was forged in late June on an infrastructure package that includes funding for roads, bridges, public transit, rail, water projects, broadband expansion, and more.

While the new year may only be days old, it feels like we've already seen enough drama for a full year—or five.

With an election in less than five months, lawmakers are scrambling to get work done before a possible change in the political balance in 2021. There are several key developments for investment advisors and investors to follow.