A Temporary Deal That Leaves Most of the Budget Unsettled
The agreement that reopened the government after a 43-day shutdown resolved only the most straightforward pieces of the federal budget. Congress approved funding for veterans’ programs, food assistance, agricultural support, and internal legislative operations—about 10% of annual discretionary spending.
Government operations for the remaining 90 percent, however-including defense, health programs, and major domestic agencies-remain on short-term funding set to expire January 30. For all practical purposes, the shutdown may be over, but the federal funding standoff is not.
Spending Targets Still Divide Lawmakers
Congress has not agreed to a top-line spending level for FY2026, and internal Republican disputes are slowing everything down. Appropriators cannot finish any of the major bills without that figure.
House Majority Leader Steve Scalise says the real negotiation begins now that the short-term measure is signed. At the same time, some Democrats are signaling they may accept the risk of another shutdown unless they secure an extension of Affordable Care Act subsidies expiring at the end of the year.
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Political Tensions Make Next Steps Complicated
The shutdown did not mend relationships across the aisle. The final hours of negotiation inflamed tensions when Senate Republicans released bill text before House sign-off. Rep. Rosa DeLauro called the move an unnecessary breach of trust.
Sen. Jeanne Shaheen described the situation by underlining that Congress needs to rebuild cooperation in order to handle the next funding phase well.
Senate Prepares a Broad but Controversial Funding Package
When the Senate returns, leadership intends to package a multi-department funding deal that includes: Defense, Education, Commerce, Labor, Health and Human Services, Justice, Transportation, Interior, and Housing and Urban Development.
While these bills have fewer ideological hurdles to clear, the Senate still needs unanimous consent to hurry them along, which would give any individual senator the ability to hold up such a process.
Four High-Risk Bills Remain Stalled
The four most contentious funding bills are Energy, State, Treasury, including IRS, and Homeland Security. None advanced out of committee, and lawmakers from both parties acknowledge that prolonged disagreements may push these departments onto a long-term stopgap lasting through September.
That would delay big decisions in Congress until the 2026 election cycle is well underway.
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Homeland Security Becomes the Central Flashpoint
Homeland Security remains the toughest piece of the puzzle. The bill has not been drafted and circulated, and the disagreements are structural. Democrats want explicit limits preventing the administration from redirecting funds toward expanded detention or mass deportation operations.
Sen. Chris Murphy accused the administration of transferring $600 million from non-detention programs into detention; he called that move illegal. His Republican counterpart, Sen. Katie Britt, recognized the huge task at hand and warned colleagues not to underestimate the fight.
Democrats press for clearer limits on executive spending
The administration, led by Budget Director Russ Vought, has aggressively frozen, shifted or canceled previously approved funds. In response, Senate Democrats are adding tougher language to forthcoming bills to reduce executive flexibility.
Sen. Patty Murray added that stronger guardrails are needed to maintain congressional authority over federal spending.
When she went to the entrance door to call her wife, she found another piece of paper on the floor.
A New Deadline Sets Up the Next Funding Clash The government might have reopened, but Washington has resolved only a fraction of the work ahead. With most agencies funded for only weeks and negotiations stalled on the most complex issues, the standoff over federal funding is far from over. The next confrontation seems inevitable as January 30 draws near.
