With Congress’s August recess nearing quickly, both the House of Representatives and Senate still need to pass funding for Fiscal Year 2027 (FY27). While all FY27 House Appropriations bills have been introduced, there has not been much movement on passing those bills. Only 2 bills have passed the full House; the rest have only passed through their respective committees. No movement has been made in the Senate.
If the FY27 bills are not passed in both chambers by October 1, 2026, the government will shut down. House Republicans are working to avoid another shutdown with a continuing resolution (CR) that would extend funding through December 4, 2026 (H.R. 9770). However, it is currently unclear whether the CR will have enough votes to pass in the House or the Senate. Both chambers are currently locked in partisan debate about FY27 funding levels and the President’s defense funding request.
Reconciliation 3.0
House Republicans are also trying to pass their party-line budget resolution (H. Con. Res. 113) which is expected to have a mix of policy priorities including:
- Additional funding for the Pentagon and funding for military operations
- Expansion of Health Savings Accounts (HSAs)
- Measures to improve access to affordable housing and low-income housing tax credits
- Efforts to identify and eliminate alleged fraud in Medicaid, Medicare, and other social safety net programs
- Voter ID and SAVE Act
Senate Republicans have not shown any positive reactions towards the House budget resolution so far, with criticisms from Majority Leader John Thune (R-SD), Budget Committee Chair Ron Johnson (R-WI), and Senator Bill Cassidy (R-LA).
Read Thorn Run Partners Special Report on the Congressional outlook for the rest of 2026.
