Congress recently returned from its annual month-long congressional recess. A key priority will be passing fiscal year 2026 appropriations bills to fund the government before the start of the new fiscal year on Oct. 1 – or approving a continuing resolution to keep the government operating at current fiscal levels. Failure to do either could lead to a government shutdown.
Adding complexity to the negotiations, House Republicans are eyeing another package of rescission – clawing back unspent federal funds from previous legislation – to offset new spending, something the Trump Administration is urging. The Republican-led Congress already approved a package earlier this year targeting foreign aid and public broadcasting. Another rescissions package could become a major sticking point with Senate Democrats, jeopardizing appropriations negotiations and pushing Congress closer to a shutdown.
