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January 28, 2025

Partial Government Shutdown Likely

The U.S. Congress faces a Friday, January 30 deadline to pass the six remaining appropriations bills necessary to fully fund the Federal government, and thus it appears the government will be partially closed beginning this weekend.

Where Things Stand: Following the 43-day federal government shutdown last fall, Congress has passed and the President has signed six of the 12 remaining fiscal year 2026 appropriations bills, ensuring this shutdown will only be for parts of the Federal government that remain unfunded.

Why It Matters: The outstanding spending bills include those that fund the Small Business Administration, Department of Labor, National Labor Relations Board, and Federal Trade Commission, so franchise businesses may experience delays in matters before those agencies.

Virginia Noncompete Franchise Bill Advances

IFA is opposing Virginia HB 69, a bill that would ban the enforcement of post-term noncompete agreements in franchise contracts, which was unanimously reported favorably out of the House Labor & Commerce Committee and is expected to receive a full House vote this week in Richmond.

Dig Deeper: HB 69 is sponsored by Del. Dan Helmer (D), a leader in the new Democratic supermajority in Richmond, and the bill was originally introduced in 2024 by Republican Sen. Chris Head, a former home care franchise owner.

Keep in Mind: New Gov. Abigail Spanberger was sworn in as Virginia’s 75th governor on January 17, 2026, and IFA sent a letter congratulating her, stressing the need to represent Virginia franchise owners and brands on issues like noncompete agreements.

Missouri Approves Franchise Protection Bill

The Missouri House Economic Committee voted to advance the IFA-backed HB 1644, which clarifies that a franchisor is not considered an employer of a franchisee's workers unless it directly and immediately controls core employment decisions.

Why It Matters: Sponsored by Rep. Matthew Overcast, the committee-approved bill now heads to the Missouri House Rules committee before it reaches the full House for consideration.

Bottom Line: If the bill passes this session, Missouri will become the twenty-second state to codify a state joint employer protection law. The bill is supported by the American Hotel & Lodging Association, Missouri Lodging Association, and the Missouri Chamber of Commerce.

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Committee Clears TRIA Reauthorization

Last week, the U.S. House Financial Services Committee advanced H.R. 7128, the TRIA Program Reauthorization Act of 2026, by a vote of 51-2. Ahead of the committee’s consideration of the bill, IFA sent a letter in support of the bill.

Dig Deeper: The Terrorism Risk Insurance Act (TRIA) is currently set to expire on December 31, 2027. The bill was introduced earlier in the month to extend TRIA for an additional seven years, through December 31, 2034.

Why It Matters: Created in the aftermath of the September 11, 2001 terrorist attacks, TRIA is a temporary federal reinsurance program to ensure the availability and affordability of commercial property and casualty insurance for franchises and other types of businesses in the event of a catastrophic terrorist attack.

IFA Fights Vermont FAST Act

In the Green Mountain State, an IFA-opposed bill seeking to raise the minimum wage for fast food workers to $20 per hour and create an advisory Fast Food Council was heard this week in the House General & Housing Committee.

Dig Deeper: H.713, sponsored by Representative William Greer, closely models California’s FAST Act and would apply to “nationwide fast food chains with more than 60 locations nationwide" — a definition that includes independently owned franchise businesses.

Why It Matters: Similar to California's FAST Act, the bill would establish a fast-food-only wage mandate, and a new council empowered to recommend additional wage increases and workplace regulations for the industry.