Overview
DHS Turmoil. In the early hours of March 27, the Senate approved a revised fiscal year (FY) 2026 Homeland Security funding bill that covers most DHS operations — including TSA and FEMA — but excludes Immigration and Customs Enforcement (ICE) and much of Customs and Border Protection (CBP) amid ongoing disputes over immigration policy. House Republicans, however, have reportedly rejected the Senate proposal with many viewing the bill as effectively defunding ICE. At press time, the House Republicans planned to try to pass a 60-day continuing resolution (CR) for the Department of Homeland Security. This situation is fluid and we anticipate further developments as the House Republican leadership determines how it will take it up the CR.
FY27 Activity Accelerates. House appropriators are moving full steam ahead on FY27 spending bills, with Member Day hearings across subcommittees ranging from Energy & Water and Military Construction–VA to Transportation–HUD, National Security–State, Agriculture, Homeland Security, and Commerce–Justice–Science. These sessions let lawmakers pitch their priorities directly to appropriators and shape early drafts. Agency oversight hearings also took place this week in the House, focusing on the GAO Federal Buildings Fund, the Office of Personnel Management, and the National Weather Service. Even without the administration’s topline budget request, these hearings serve as a key opportunity to go on the record, influence agency actions, and set the tone for the months ahead.
Supplemental Suspense. Alongside regular FY27 appropriations work, significant congressional attention remains fixed on an anticipated supplemental funding package that has yet to be formally submitted by the White House. Reports suggest the request could total up to $200 billion, primarily to meet military needs stemming from operations in Iran. Speaker Mike Johnson (R-LA) has signaled the Pentagon request will "probably" be folded into a reconciliation bill, citing a lack of Democratic support for replenishing munitions tied to the Iran conflict. Senate Budget Chair Lindsey Graham (R-SC) has pledged to move quickly on drafting the reconciliation measure, which could pass the Senate with a simple majority. Many appropriators, however, are wary of using reconciliation for supplemental funding, preferring to keep such issues within regular appropriations channels to maintain the integrity of the process.
Committee Shuffle. Sen. Markwayne Mullin's (R-OK) confirmation as Homeland Security Secretary has triggered changes on the Senate Appropriations Committee. His seat will be filled by Sen. John Husted (R-OH), who will sit on the Agriculture-FDA; Financial Services and General Government; Interior and Environment; Labor, Health and Human Services, and Education; Legislative Branch; and State, Foreign Operations subcommittees.
Sen. Deb Fischer (R-NE) is expected to assume Mullin's role as chair of the Legislative Branch Subcommittee. Sen. Fischer previously served as chair of the Senate Rules Committee, therefore bringing significant oversight experience and familiarity with legislative operations to the role.
