Government Funding Update
January 6, 2026
With the January 30 funding deadline approaching, lawmakers have limited time to pass a spending deal to avert a partial shutdown. There are only twelve legislative days between now and January 30, when current funding runs out.
Why it matters: Nobody wants a repeat of the longest shutdown in US history from late last year, which set the record at 43 days. However, it is uncertain how quickly legislators will be able to agree on a deal before the end of the month.
What they’re saying: According to Politico, Leaders from both parties emphasized their support to works towards a deal last week.
- “I don’t think either side wants to see that happen,” Senate Majority Leader John Thune (R-SD) said of a shutdown next month. “I think that’s toxic for both parties.”
- “I don’t want to see another government shutdown,” Sen. Dick Durbin (D-IL), the number two Senate Democrat, said about leveraging that deadline to get a health care concession. “I’ve had enough of them.”
Go deeper: While negotiations continue on Capitol Hill, there is still no finalized funding agreement, and the legislative calendar leaves little margin for error.
- Congress has only passed 3 of the 12 required appropriations bills: Military Construction and Veterans Affairs, Agriculture-FDA, and the Legislative Branch. These only cover a small slice of discretionary spending.
- On Monday, House and Senate appropriators release bipartisan, bicameral spending deals on three additional bills (“minibus”): Commerce-Justice-Science; Interior-Environment; and Energy-Water. The House is expected to vote on the minibus later this week.
- Before the holidays, the Senate was close to passing a “minibus” package that would fund about two-thirds of discretionary spending, including major departments like Defense, Labor, HHS, Education, Justice, Transportation, and HUD.
- Democrats pumped the brakes on the deal over Trump’s threat to dismantle the National Center for Atmospheric Research Center in Colorado, seeing it as a warning sign about how funds might be used or ignored.
Bottom line: The majority of government funding is still unresolved, Congress will need to move fast to avoid another shutdown on January 30.
Please contact
James Montfort at (
Jmontfort@crefc.org) with any questions.