Status of FY 2026 Funding
- Pay our Troops: The President ordered the Pentagon to find a way to pay U.S. troops. Department of Defense (DOD) officials are diverting $8 billion in previously appropriated research and development funding. It’s not clear that the Pentagon can do this legally, but leaders in both parties are privately applauding the effort to pay our troops.
- Coast Guard: The Administration also announced that the Coast Guard will also receive paychecks.
- Law Enforcement: OMB is also working on a plan to get paychecks to federal law-enforcement officers.
- WIC: The Trump Administration will ensure the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) can continue to operate for the foreseeable future. The Administration says it will use funds from tariff revenue to fund the program.
Currently, both parties express a desire to negotiate a broader funding agreement, but they disagree on the sequence. Republicans maintain that negotiations cannot commence until Democrats provide sufficient votes to pass the House-approved Continuing Resolution (CR). Conversely, Democrats insist on discussing the specifics of a broader deal before assisting with passing the funding measure in the Senate.
Congressional Republicans and the White House are adopting differing (and sometimes conflicting) strategies to resolve the impasse. Senate Majority Leader Thune (R-SD) and House Speaker Johnson (R-LA) are employing a more methodical approach. Thune continues to bring the House-passed CR to the Senate floor for re-votes, banking on the eventual shift in enough Democratic votes. One leverage point he anticipated was resolved over the weekend when President Trump announced the Defense Department would repurpose unused funds to ensure active-duty military personnel receive their paychecks, due this Wednesday. Additionally, the White House stated last week that tariff revenue would be used to continue funding the Women, Infants, and Children (WIC) nutrition program through October, resolving another potential inflection point. Both Thune and Johnson are striving to keep their members aligned, with Johnson even keeping the House out of session for over three weeks to prevent unoccupied Members from complicating matters further. These strategies have resulted in a notably low-energy shutdown compared to previous government funding battles.
In contrast, the White House has adopted a more aggressive, ideological, and unpredictable approach to increase political pressure on Democrats. Last week, the administration leaked a draft White House Office of Management and Budget (OMB) memorandum arguing that furloughed federal workers are not eligible for back pay once the government reopens. This issue relates to the Government Employee Fair Treatment Act of 2019, which stipulates that both furloughed and exempted employees “shall be paid” for the shutdown period “subject to the enactment of appropriations Acts ending the lapse.” The OMB contends that this provision is not self-executing, and back pay for furloughed employees requires specific appropriation. However, the House-passed CR does not include such appropriation language. Congressional Republicans quickly countered, insisting that this is not how the law operates and that government workers should receive back pay. President Trump later remarked that the administration would “take care of our people, but some people don’t deserve to be taken care of.” On Friday, the OMB announced that mass federal layoffs had commenced, with over 4,000 employees reportedly laid off last week and more cuts possible. The administration asserts these layoffs are substantial but will not affect every government agency. Democrats argue that these layoffs are part of the President’s long-term agenda and would have occurred regardless of the shutdown.
Within the Republican Party, disputes persist over the Democrats’ core demand – extending the ACA enhanced premium tax credits. Last week, Rep. Green (R-GA) vocalized her frustration that GOP leadership has not devised a plan to extend the credits to avoid significant health insurance premium increases for American citizens. However, far-right members remain vehemently opposed to any extension of the credits.
Despite these developments, as illustrated in the chart below, support for the CR has remained unchanged since September 30. Both sides are now looking to President Trump to tip the scales.
Votes on Republican CR (H.R. 5371)
