Overview
Defense Supplemental in the Works. Following US military strikes against Iran over the weekend, congressional Republicans confirmed Wednesday that the Trump administration is preparing an emergency funding request to support ongoing US-Israeli military operations. While there is not yet an official number attached to the package, early reporting projects roughly $50 billion. That figure could grow substantially to include other administration priorities, such as items excluded from Fiscal Year 2026 (FY26) appropriations and additional funding for FEMA's Disaster Relief Fund.
Despite this ambiguity, Republicans in both chambers have signaled support for such a package. Democrats, however, are approaching the request with caution. Senate Appropriations Ranking Member Patty Murray (D-WA) said she has "seen no justification" for the proposal and stressed the importance of understanding "the cost of war." Much will hinge on how long and how intense the Iran conflict becomes. Congressional Democrats have also been quick to highlight the likelihood that the cost of this conflict will exceed the cost of extending the Affordable Care Act Enhanced Premium Tax Credits, which were at the center of the 43-day shutdown last fall.
FY27 Timing. The White House is targeting the week of March 30thfor release of President Trump's FY27 budget request, which is roughly eight weeks past the statutory deadline but earlier than last year's May submission. The President has already indicated he will seek $1.5 trillion for defense, a roughly 50% increase over current funding levels. Beyond that, few details have been disclosed, and the Office of Management and Budget has not commented publicly.
House Appropriations Chair Tom Cole (R-OK) has said FY27 markups could begin as early as April, pending receipt of the President's request, and he'd like to have markups wrapped up by July 4th. While Senate appropriators have not yet publicly committed to a schedule, signs suggest they will be right behind the House and move quickly. For those submitting FY27 requests, most House portals will close today or tomorrow (if they haven't already), so time is of the essence. Senate portals are also opening, with many deadlines approaching in mid-March.
DHS Shutdown Impact Intensifies. The shutdown of the Department of Homeland Security (DHS) has now entered its third week, with limited progress in negotiations. Senate Appropriations Chair Susan Collins (R-ME) and Homeland Security Subcommittee Chair Katie Britt (R-AL) released a fact sheet this week to highlight current operational strains caused by the shutdown. These include:
- Missed paychecks for more than 50,000 TSA agents expected next week;
- Extended wait times at airport security;
- Lapsed funding for FEMA's Disaster Relief Fund, leaving only $1 billion available for new emergencies after maintaining its $3 billion reserve; and
- Reduced staffing at the Cybersecurity and Infrastructure Security Agency, which is operating with roughly one-third of its normal workforce due to furloughs.
Republicans are highlighting these impacts amid heightened security concerns tied to the Iran conflict, while Democrats continue to push for immigration enforcement guardrails as part of any deal to reopen DHS. As far as we are hearing, negotiations are ongoing but remain far from resolution.
