Congress is racing against time to finalize funding for federal agencies as the fiscal year 2026 approaches. With critical votes looming, lawmakers are optimistic that a government shutdown at January’s end can be averted. This week, they presented a fourth spending package aimed at supporting the budgets of essential government departments.
Funding Cuts and Re-Staffing Initiatives in FY26 Package
The latest appropriations bill encompasses funding for departments including Defense, Labor, Health and Human Services, Education, Homeland Security, Transportation, and Housing and Urban Development. Currently, these agencies are relying on a stopgap resolution that will expire after January 30.
While the funding package sidesteps major cuts proposed by former President Trump, it does reflect staffing adjustments that address the rightsizing of federal bureaucracy.
Key Outcomes of the Spending Package
- DHS Oversight: The Department of Homeland Security’s budget drew significant attention this year. Funding for Customs and Border Protection will be reduced by $1 billion, while Immigration and Customs Enforcement sees no significant change in spending. Provisions for de-escalation training and body cameras were also included.
- Reversing Workforce Cuts: The funding package supports additional hiring in the Cybersecurity and Infrastructure Security Agency, while the U.S. Citizenship and Immigration Services is tasked with evaluating its staffing needs.
- Health Research Investments: Contrary to Trump’s proposals, the National Institutes of Health will receive an increase of $415 million. The Centers for Disease Control and Prevention’s funding remains stable, contrary to earlier suggestions for massive cuts.
- Air Traffic Control Workforce Boost: Lawmakers have allocated $40 million to raise air traffic controllers’ salaries and aimed to boost workforce numbers by 2,500 individuals at the Federal Aviation Administration.
- FEMA’s Reinforcement: The Federal Emergency Management Agency’s budget will see an 18% increase, ensuring the agency retains essential staff and operational capabilities in response to disaster management needs.
- IRS Funding Adjustments: The spending package also includes rescissions amounting to $11.7 billion from the Internal Revenue Service, which had significant funding increases recently as part of the Inflation Reduction Act.
As the House is expected to approve this measure shortly, the Senate will consider it next week after recess. Key provisions accompany the bill, ensuring that the allocation of federal funds becomes more transparent and accountable, requiring detailed reporting on spending and staffing.
Lawmakers from both parties are optimistic about the passage of this funding package, which aims to address critical needs across various government sectors while boosting workforce levels in essential agencies.
