Congress made a major move today to dodge another government shutdown, releasing a $1.2 trillion funding package that would keep federal operations running through the end of September. The deal marks a bipartisan effort to wrap up a months-long funding battle and protect millions of federal workers from another payless furlough.
The federal government faced a partial shutdown on January 30 if Congress didn't pass further appropriations. Lawmakers were racing against the clock—this new package arrived just 10 days before that deadline. Congress is on track to avoid another government shutdown at the end of the month after the bipartisan agreement was released, but the real work still lies ahead. Congress has passed six of the needed 12 bills to fund the government in FY2026, so there's momentum, but the finish line is still within sight.
The package would fund the Departments of Defense, Homeland Security, Labor, Health and Human Services, Housing and Urban Development, Transportation, and Education, making up the lion's share of federal funding Congress controls. For Defense alone, the bill includes a 3.8% pay increase for all uniformed service members. On education, amid the Trump administration's plans to shut down the agency, $79 billion has been provided to continue existing programs.
The biggest friction point? Immigration and Customs Enforcement (ICE) funding. Progressives have threatened a rebellion over funding for ICE if President Trump's immigration crackdown is not reined in. Democrats are seeking what Rep. Rosa DeLauro called "guardrails" that would come with funding for ICE, saying "We can't deal with the lawlessness and terrorizing of communities". Despite the tensions, the legislation was negotiated between the Senate and House in a conference process between Democrats and Republicans, with the House Committee on Appropriations stating "No poison pills are included". The House is expected to vote on this package this week, followed by Senate action to meet the January 30 deadline.