Overview
Senate Releases FY27 Guidance. The Senate issued its fiscal year (FY) 2027 appropriations guidance this week, officially launching the process in the upper chamber and putting subcommittee deadlines on the calendar. Congress is still waiting on the President's Budget Request, expected the week of March 30, but other funding dynamics could surface first, including the possibility of an emergency supplemental package tied to the conflict in Iran. Meanwhile, the Department of Homeland Security (DHS) remains unfunded for FY26, though there was some notable activity this week (more on that below).
For FY27, Senate programmatic request deadlines fall between April 1 and May 12, so most member portals will close ahead of April 1 if they haven't already. Earmark request windows open April 7 and close April 28. This year's guidance also comes with some important rule changes. Senators will now be limited to 65 requests for each of the Transportation-HUD and Labor-HHS-Education bills, down from 80 in FY26. Additionally, Senate earmarks for Department of Energy (DOE) projects are no longer allowed, driven by a policy shift to reduce federal spending on renewable energy, wind, solar, and hydrogen research and thus declining demand, with DOE funding requests dropping by more than half since FY23. There's also a new earmark opportunity in the Financial Services bill for the Office of National Drug Control Policy's High Intensity Drug Trafficking Areas Program, which supports local law enforcement in major drug trafficking corridors.
On the House side, members will be allowed 20 project requests across all 12 bills for FY27, up from 15 in FY26. As we stated previously, the House will also restore earmarks in the Labor-HHS-Education bill, but eligibility will be limited to certain projects under the Health Resources and Services Administration account. DOE and Financial Services earmarks remain prohibited in the House.
DHS Movement? DHS has now been shut down for more than a month, with negotiations ongoing. This week brought some signs of movement, with White House Border Czar Tom Homan reportedly meeting with appropriations leaders and other key negotiators, including Sens. Jeanne Shaheen (D-NH), Angus King (I-ME), and Catherine Cortez Masto (D-NV). Further, Senate Majority Leader Thune (R-SD) did not rule out cancelling the upcoming recess (set to begin March 30) if DHS funding remains unresolved — a signal that talks may be gaining momentum.
This movement comes after the White House and congressional Democrats exchanged several proposals, which led the White House to pen a letter to Chair Susan Collins (R-ME) and DHS Subcommittee Chair Katie Britt (R-AL) this week updating them on discussions and voicing frustration with Democrats' responses, arguing they have not made a good-faith effort to compromise. However, Democrats argue that Senate Republicans have blocked five separate bills offered by Senate Democrats to fund key components of DHS – including TSA, FEMA, and the US Coast Guard – while negotiations continue on ICE and the CPB.
While outstanding policy differences still need to be resolved, the meetings and signals from leadership in the latter part of this week suggest that the wheels may be turning toward a potential resolution.
Eyes on the Supplemental. Congress is still waiting for an official proposal from the White House outlining supplemental funding needs to cover costs related to the conflict in Iran and increased munitions production. The Washington Post reported this week that the Pentagon's request could total $200 billion, though appropriations leaders say they have not received specifics.
Whether such a package could garner Democratic support is unclear. One potential path is the budget reconciliation process, which Speaker Johnson (R-LA) floated during the Republican retreat in Florida last week. Reconciliation allows legislation to pass the Senate with a simple majority, bypassing the usual 60-vote filibuster threshold, which can significantly ease passage for partisan priorities. However, appropriators in both chambers prefer to handle funding measures through their committee to avoid further eroding the committees' authority.
For now, preliminary talks between appropriators on a potential supplemental remain bipartisan and informal, given there is no proposal yet from the administration. Chair Collins also expressed interest and support for a public hearing on the proposal once it's released. With many Democrats questioning the war in Iran, it may be difficult to reach agreement, adding to the interest in using reconciliation.
