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Negotiators in both chambers of Congress have reached an agreement to fund every federal agency in fiscal 2026, with appropriators announcing a final deal on Tuesday, giving lawmakers 10 days to get the remaining bills to President Trump’s desk before a shutdown would occur.
The Senate last week passed a second “minibus” package of spending bills, sending the measure to Trump to clear out half of the 12 annual must-pass appropriations bills. The House has already passed a third package—funding the departments of State and Treasury, and other governmentwide oversight agencies—and the Senate is expected to pass it next week.
Lawmakers on Tuesday unveiled the fourth and final minibus, which would fund the departments of Defense, Labor, Health and Human Services, Education, Homeland Security, Transportation and Housing and Urban Development. Those agencies, as well as State and Treasury, are currently funded through a stopgap continuing resolution that is set to expire after Jan. 30.
The new package marks yet another breakthrough between Republicans and Democrats in both the House and Senate. The key agencies of the bill would be funded at the following levels:
- Defense: $838.7 billion, a less than 1% increase
- HHS (not including the Food and Drug Administration): $116.8 billion, a less than 1% decrease
- Education: $79 billion, essentially flat funded
- HUD: $77.3 billion
- DHS: $64.4 billion, a 1% decrease
- Transportation: $25.1 billion, a less than 1% decrease
- Social Security Administration: $12.3 billion, essentially flat funded
- Labor: $13.7 billion, a 1% increase
Like the other three spending packages, the measure largely rejects the drastic funding cuts Trump and House Republicans had sought. Most agencies and programs avoided receiving anything other than a minor haircut.
“This latest funding package continues Congress’s forceful rejection of extreme cuts to federal programs proposed by the Trump administration,” said House Appropriations Committee Ranking Member Rosa DeLauro, D-Conn. “Where the White House attempted to eliminate entire programs, we chose to increase their funding. Where the administration proposed slashing resources, we chose to sustain funding at current levels.”
Democratic lawmakers have repeatedly called it critical to pass full-year appropriations bills to avoid ceding power to the Trump administration in making funding choices. Agencies operated under a full-year CR in fiscal 2025, providing more flexibility to the White House.
Rep. Tom Cole, R-Okla., who chairs the House spending panel, said the package demonstrated that lawmakers could still work together to get important work done.
“At a time when many believed completing the FY26 process was out of reach, we’ve shown that challenges are opportunities,” Cole said. “It’s time to get it across the finish line.”
The House is expected to approve the measure this week. The Senate would then take it up next week, when it returns from recess. Lawmakers will have to pass the bill and Trump would then have to sign it into law by Jan. 30 to avoid the second shutdown of the fiscal year.
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20 Comments
The agreement to fund every federal agency in fiscal 2026 is a crucial step towards avoiding a government shutdown and providing stability to federal programs and services.
The fact that most agencies and programs avoided drastic funding cuts proposed by the Trump administration is a testament to the bipartisan effort, as noted by House Appropriations Committee Ranking Member Rosa DeLauro.
Yes, it’s a relief to see that Congress is pushing back against some of the more extreme cuts proposed by the White House.
The stopgap continuing resolution set to expire after January 30 adds a sense of urgency to the passage of this funding package, and I hope lawmakers can finalize it without further delays.
I’m skeptical about the ability of Congress to pass the bill and get it to the President’s desk within the 10-day window, given the track record of delays and partisan disagreements.
It’s notable that the bill rejects the drastic funding cuts proposed by Trump and House Republicans, instead opting for minor adjustments to most agencies and programs.
The bipartisan deal on 2026 funding bills is a significant achievement, especially given the historical challenges in passing full-year appropriations bills on time.
This deal could set a positive precedent for future budget negotiations and help reduce the likelihood of government shutdowns.
It’s interesting that the bill funds the Department of Education at $79 billion, essentially flat funded, which could have significant implications for schools and universities relying on federal support.
The role of Congress in making funding choices, as opposed to the White House, is significant in this deal, as Democratic lawmakers have emphasized the importance of passing full-year appropriations bills.
The funding package’s impact on the Department of Health and Human Services, with a less than 1% decrease to $116.8 billion, will be closely watched, especially regarding its effects on healthcare programs.
The fact that the Senate is expected to pass the third package, funding the departments of State and Treasury, next week suggests a sense of momentum behind the bipartisan effort to pass the funding bills.
Rep. Tom Cole’s statement that challenges are opportunities is encouraging, as it suggests a willingness to work across the aisle to achieve common goals.
The Department of Labor’s 1% increase in funding to $13.7 billion could have a positive impact on job training programs and workforce development initiatives.
The Social Security Administration’s funding of $12.3 billion, essentially flat funded, may not keep pace with inflation, potentially affecting beneficiaries who rely on these funds.
That’s a valid point, and it will be important to monitor how this funding level impacts Social Security recipients in the coming year.
The allocation of $838.7 billion to the Department of Defense, a less than 1% increase, seems relatively modest considering the current global security landscape, and I’m curious to see how this will impact our military presence abroad.
I agree, it’s surprising that the increase is so small, especially given the administration’s emphasis on national security.
I’m concerned about the 1% decrease in funding for the Department of Homeland Security, given the critical role it plays in national security and border control.
The Department of Transportation’s funding of $25.1 billion, a less than 1% decrease, may not be sufficient to address the nation’s infrastructure needs, which could have long-term economic implications.