Overview
Senate Summer Rush: The Senate is poised to achieve a key milestone in the appropriations process as Appropriations Chair Susan Collins (R-ME) moves to assemble the first "minibus" package of the cycle. Collins is hotlining three bills — MilCon-VA, Ag-FDA, and CJS — though the final composition of the package could change. While timing for floor action is still uncertain, the Senate made its first move toward passage by starting debate on the measure on Wednesday. Moving forward, similar minibuses are expected to be used in lieu of standalone bills.
This floor activity follows a busy week for Senate appropriators, who successfully passed the Interior and THUD appropriations bills out of Committee, thus favorably reporting half of the twelve appropriations bills to date. More progress is anticipated as markups for Defense and Labor-HHS are expected next week, although a formal announcement is still pending.
Complicating consideration of the Labor-HHS bill is speculation around a second rescissions package being developed by the Office of Management and Budget, reportedly targeting education programs. Since education programs fall under the scope of Labor-HHS, Republican efforts to align spending levels with a potential White House request are likely to face stiff opposition from Democrats. This may also complicate progress on the Defense bill, as Labor-HHS and Defense are often considered together.
House Heads Home: After passing only two of their FY26 appropriations bills, the House has adjourned early for August recess and isn’t scheduled to return until September. Before heading home, the House Appropriations Committee reported the National Security-Department of State (formerly known as SFOPs) and Interior bills, leaving the CJS, Labor-HHS, and FSGG bills for review upon their return in September.
Big Picture: While both chambers continue advancing their FY26 measures, enduring tensions over the process remain. Deep-seated distrust between the two parties, exacerbated by the administration’s efforts to re-shape the process in line with its policy agenda, is a major stumbling block.
A short-term CR to extend funding past the September 30 deadline is widely expected as a temporary measure to allow space for negotiations on a longer-term agreement. However, what happens beyond a short-term solution remains an open question. Some Republicans are openly discussing another year-long CR, potentially including earmarks, but Democrats have voiced strong opposition to such a move. All these dynamics increase the likelihood of a government shutdown.
At the same time, appropriators from both parties see this as an opportunity to reaffirm Congress’s constitutional authority – the "power of the purse" – while protecting the traditionally bipartisan nature of the appropriations process. Senate Majority Leader John Thune (R-SD) indicated his preference for passing full appropriation bills over another CR, calling the latter "not … a very good solution." With a week until the planned August recess, the appropriations state-of-play remains extremely fluid.
