What's Happening?
U.S. lawmakers have adjourned for the holiday season without making significant progress on the fiscal year 2026 government funding bills. This delay leaves Congress with less than a month to pass the remaining
nine out of twelve appropriations bills when they reconvene on January 6. The government is currently operating under fiscal year 2024 appropriations, as a real budget for fiscal year 2025 was never passed. Instead, Congress has relied on a series of Continuing Resolutions (CRs) to avoid a government shutdown. The latest CR is set to expire on January 30, 2026. Senate Majority Leader John Thune, R-S.D., managed to secure support for a five-bill minibus, which includes funding for several federal agencies, but was unable to bring it to a vote due to opposition from two Democratic senators.
Why It's Important?
The lack of progress on federal funding bills raises the risk of another government shutdown, which could have significant implications for federal agencies and the services they provide. A shutdown could disrupt operations in key areas such as defense, transportation, and health services, affecting millions of Americans. The reliance on CRs to keep the government running highlights ongoing partisan disagreements and the challenges of reaching a consensus on budgetary matters. The potential for a shutdown also underscores the importance of timely legislative action to ensure the continuity of government services and avoid economic disruptions.
What's Next?
When Congress reconvenes in January, lawmakers will face a tight deadline to pass the remaining appropriations bills before the current CR expires on January 30. The pressure to avoid a shutdown may lead to further negotiations and potential compromises between Republicans and Democrats. Senate Majority Leader Thune has expressed a commitment to funding the government through the regular order process, but the path forward remains uncertain. The outcome of these negotiations will be closely watched by federal agencies, employees, and the public, as it will determine the government's ability to function effectively in the coming months.
