Congress Looks Forward to FY 2027 and Eyes Potential Second Reconciliation Package

As previously reported, Congress has neared completion of its appropriations process of fiscal year (FY) 2026, aside from the unfinished Homeland Security appropriations bill which remains under a temporary continuing resolution (CR), following the final passage of the Labor, Health and Human Services, and Education (LHHS) and Commerce, Justice, and Science (CJS) appropriations bills. The final bills for FY 2026 largely rejected the President’s proposal for cuts to several key scientific agencies, including the National Institutes of Health (NIH), National Science Foundation (NSF), Centers for Disease Control and Prevention (CDC), the Department of Education, and more.

On January 7, House Speaker Mike Johnson (R-LA) formally invited President Trump to give his State of the Union address on February 24, where the President will have the chance to discuss the previous year’s actions and set the stage for his priorities for his second year. Historically, the Administration has released its budget request for the next year following the State of the Union. The President’s Budget Request (PBR) outlines the President’s funding and program “wish list” for the upcoming fiscal year. With respect to the FY 2027 budget, which traditionally have been delivered to Congress in February, there are rumors that its release may be delayed, as we saw last year. Notably, in a recent Congressional hearing on NIH modernization efforts, several Members of Congress stated their opposition to another year a proposed budget cuts from the Trump Administration. Senator Susan Collins (R-ME), the Chair of the Senate Appropriations Committee, stated, “We don’t need any more of these huge budget cuts submitted as part of the President’s budget” (see related article).

In other news, the President and Congress are reportedly eyeing a second reconciliation package. As previously reported, the Trump Administration signed into law the One Big Beautiful Bill Act (H.R. 1) on July 4, 2025, which reallocated resources in order to pay for permanent tax cuts and increase funding for border security activities. Rumors of a new reconciliation plan have taken hold on Capitol Hill, largely focused on increasing the U.S. defense budget to the Trump Administration’s verbal request of $1.5 trillion in 2027. House Armed Services Chairman Mike Rogers, (R-AL) and Senate Armed Services Chair Roger Wicker (R-MS) have reportedly supported the idea of including upwards of $450 billion for national security in a reconciliation package, however, other Members have shown less enthusiasm, with Sen. Mitch McConnell (R-KY), who Chairs the Senate Appropriations Defense Subcommittee, arguing in favor of securing any and all funding through the regular appropriations process.

Stay tuned to COSSA’s continued coverage on the 119^th Congress.