Congress returned from its August recess last week and took no action on putting together a plan to avoid a Federal government shutdown. There are now 22 days until the end of the federal fiscal year when the government runs out of funding authority. Republican Congressional leaders and the Trump White House are still strategizing about how to keep the agencies open beyond Sept. 30. None of the 12 appropriations bills has yet been completed and only a few have actually reached the floor in their respective chambers. Congress is in session this week and next, but then lawmakers depart for a week for Rosh Hashanah.
Republican Hill leaders are considering two options: enact a short-term spending bill until November or December, which is the preference of congressional appropriators; or pass a continuing resolution (CR) providing funding at current levels into early 2026, which seems to be the White House’s favored move. While bipartisan cooperation is possible on select bills—such as defense and veterans affairs—broader negotiations on overall funding levels are expected to drag well into the fall. The result is an uncertain outlook for federal agencies, which must prepare for delayed budgets and potential spending constraints.
Programs of interest to LICA members have received some action. For transportation programs, both the House and Senate committees have passed their respective versions of the DOT appropriations bill and floor action is pending. Both bills approve DOT investment levels authorized by the 2021 Infrastructure Investment and Jobs Act (IIJA) which provides for increased funding in FY 2026 for highway, public transportation and airport construction projects. However, funding these transportation through a CR would leave these programs at FY 2025 levels thereby reducing the IIJA authorized levels.
Agriculture programs could benefit from a CR as the House committee reported the agriculture appropriations bill providing discretionary funding totals of approximately $25.5 billion, a 4.3 percent decrease from FY 2025 enacted levels. In contrast, the Senate-reported version proposes around $27.1 billion, which is a 3.0 percent increase over FY 2025. President Trump’s FY 2026 budget request envisions just $21.0 billion in discretionary Agriculture appropriations—a sharp 21.1 percent cut from FY 2025.