Congress Navigates a Critical Legislative Season
by Lewis-Burke Associates
by Lewis-Burke Associates
Now that Congress has returned from August recess, the most urgent item is keeping the government funded beyond September 30, the end of the fiscal year. With appropriations still not finalized into law and the risk of government shutdown running high, here’s what’s on the table.
Navigating a Potential Government Shutdown
The House and Senate have separately advanced most of the FY 2026 appropriations bills, which include stable or modestly increased funding for science, health, and education programs. However, none has been conferred and signed into law, and with less than a month before funding expires, Congress faces two possible paths forward.
The first option is a short-term continuing resolution (CR), which would act as a safety net by extending FY 2025 funding levels into early November. This is considered the most likely scenario, giving lawmakers additional time to finalize FY 2026 appropriations. CRs have become routine since Congress has not passed all appropriations bills before the start of the fiscal year since 1997. If a CR is enacted, it will likely extend funding at FY 2025 levels, but appropriators may need to be more prescriptive than in the past, directing federal agencies to spend funds as intended rather than leaving allocations to Administration discretion. Without such guidance, the White House could implement lower funding levels, such as those proposed in the President’s FY 2026 budget.
The second option is a government shutdown. While many lawmakers want to avoid a shutdown, the possibility remains high. Some conservative Republicans view a shutdown as an opportunity to give the Administration greater discretion to prioritize border patrol and immigration enforcement over science and education programs. Democrats, meanwhile, are preparing for potential disagreements with the Trump Administration, which has previously withheld or redirected funds in ways that diverged from congressional intent. This includes $9 billion in clawed-back foreign aid and public broadcasting funds, with additional rescissions targeting the Education Department expected. Democrats also contend that the Administration has illegally impounded funds in violation of the Impoundment Control Act of 1974, with the GAO finding five instances of illegal impoundment this year and another 35 cases under review. The White House Office of Management and Budget are reportedly considering up to $400 billion in “pocket rescissions,” a tactic that could allow funding to lapse if Congress does not act quickly.