Federal Funding Set to Expire at Midnight with No Solution in Sight

As previously reported by COSSA, federal funding for fiscal year (FY) 2025 is set to expire tonight at midnight. It has been a tumultuous few weeks, with House Republicans passing a continuing resolution (CR) which, if enacted, would extend funding to November 21. The bill later failed in the Senate by 44-48 vote with Democrats and Republican Sens. Rand Paul (R-KY) and Lisa Murkowski (R-AK) voting against it. Sen. John Fetterman (D-PA) was the only Democrat to vote for the House-passed CR.

Late last week, House and Senate Democrats put forward their own stopgap bill that would extend funding to October 31 with additional funding allocated for security, as included in the House-passed CR, as well as extensions for Affordable Care Act subsidies, reversals on Medicaid cuts enacted in the “big, beautiful bill,” and language to address funding cuts and pocket recissions. It would also restore funding for public broadcasting. The Democratic bill failed in the Senate in a 47-45 vote along party lines. It was not brought to the House floor.

On September 25, Democratic leaders, including Senate Minority Leader Chuck Schumer (D-NY) and Rep. Hakeem Jeffries (D-NY), were scheduled to meet with President Trump for negotiations, but the President abruptly cancelled the meeting, reportedly claiming Democrats were being unreasonable in their demands. In an unprecedented political maneuver, House Speaker Mike Johnson (R-LA) also cancelled votes for September 29 and 30 and called for the Senate Democrats to pass the House-passed CR or risk a government shutdown. Further, President Trump announced that in the events of a shutdown, federal agencies would be directed to terminate employees that do not align with the Administration’s priorities (see related article).

On September 29, President Trump agreed to meet with top Congressional leaders, including Sen. Schumer (D-NY), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader John Thune (R-SD), and House Speaker Mike Johnson (R-LA). Negotiations were largely unsuccessful and, following the meeting, President Trump released an AI-generated video mocking the Democratic leaders, worsening already strained tensions between the two parties. The Senate is scheduled to vote for a second time on the House-passed CR this evening, but unless significant concessions are made, it is unlikely Congress will reach any final solution before the end of the day, ushering the government into a shutdown. The longest government shutdown lasted thirty-five days in 2018-2019 under President Trump.

In the case of a government shutdown, several Federal Agencies’ operations would be temporarily shuttered. Unlike the government shutdown in 2019, no funding bills have been enacted, leaving the Administration unilateral authority over which agencies and activities are considered essential. In past years, the White House Office of Budget and Management (OMB) has posted contingency plans ahead of a potential shutdown, but these plans have instead been relocated to each agency’s individual website.

Stay tuned for COSSA’s continued coverage on the appropriations process.