America's new Congress looks only slightly different from the old one. With Republicans winning a new but slim majority in the Senate, the GOP hardly has a mandate but it can set the agenda for the next two years. They will need the blessing of some Democrats and President Barack Obama to make tweaks to legislation. This favours an incremental, rather than bold, approach to governing.
Infrastructure may be an ideal jumping-off point. Both sides admit spending on foundational projects for transportation and energy, from drinking water to canals, has been insufficient. For a politically palatable mix, the left will need to forgo some green project ambitions and private capital will need to be leveraged to minimise the cost to taxpayers, satisfying conservatives.
America's out-of-date energy policy seems a particularly ripe area for incremental change as the nation nears net-producer status. Opening up natural gas exports could provide an economic boost. The long-delayed Keystone XL pipeline from Canada could be a bargaining chip finally handed to Republicans by the president for stronger efficiency efforts.
Immigration reform will be more challenging. But there's room for some reform. The Senate passed a bill in 2013. House Republicans, while largely on the same policy page as the upper chamber, say they don't trust the president to follow through with its enforcement provisions, having used executive actions to sidestep Congress.
Conservatives approving amnesty for undocumented immigrants could also upset the GOP base. That means the president would need to accept measures that restrict his ability to soften enforcement. Even a modest move forward could benefit Republicans if it helps sway the growing Latino voter towards the party as the next presidential race approaches.
Corporate tax reform is another heavy lift. The recent "inversion" craze, where US companies purchase foreign firms to adopt their lower tax regimes, provides motivation to act. Both parties mostly agree on eliminating corporate deductions to lower prevailing rates. They next must agree on a revenue-neutral plan, where Republicans surrender tax cuts for businesses and Democrats forego money to spend on other programmes.
Imagining big initiatives like entitlement reform advancing while gridlock ensues would be fantasy. Tweaking still-young laws like the Dodd-Frank and Affordable Care Acts is more realistic. But if both parties decide to govern in increments, progress is possible.
