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Government Funding Update

September 16, 2025

With 14 days to go until a government shutdown, lawmakers are considering a short-term funding deal that would keep federal operations running through November 21, sources confirmed this weekend. The proposed continuing resolution (CR) would buy more time for Congress to negotiate full-year appropriations. 

• House Republicans just released the legislative text of their CR. 

Why it matters: The new plan comes as negotiations between the White House and Capitol Hill remain tense. The Trump administration has pushed for a longer stopgap bill running through January 31, 2026, but House Republicans appear to favor the shorter extension to maintain leverage over spending priorities. 

• While no deal is finalized, leadership aides say the November 21 CR is gaining traction in both chambers as the most realistic path to avoid a shutdown when current funding expires September 30. Its passage in the House can be done without Democratic support.
• However, in the Senate seven Democrats will need to work with Republicans to pass any bill, to reach the 60 -vote threshold to pass this bill, and their support is far from guaranteed.
• Without action, many federal agencies would face closure, with services halted and employees furloughed. Lawmakers have seven legislative days remaining to find a path, as they are out of town next week on recess.
  

If you want to make it about trying to get an extension so we actually have time to try and run a normal appropriations process and get some of the bills passed under regular order, then I think you want to have it as clean as possible.

Source: The Hill

In addition, the Trump administrations use of pocket recissions is being litigated in court. The controversial technique allows the President to claw back congressionally appropriated funds. Democrats argue that their use of this provisions could make spending negotiations moot, as they could just retract the funds later.

Democrats have focused their criticism on the GOP regarding healthcare, and have said they will not vote for any spending measure that failures to address the extension of Affordable Care Act subsidies, which expire on Jan. 1, 2026. They warn that if this is not addressed, millions of Americans will be forced to pay more for health coverage. 

What’s next: The upcoming days will be crucial as lawmakers negotiate to avoid a government shutdown, with key issues such as the extension of Affordable Care Act subsidies and the Trump administration's use of pocket recissions shaping the discussions.

Contact James Montfort (jmontfort@crefc.org) with any questions.

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