Senate Democrats Break Rank to Pass New Spending Package

Late Monday night, seven Senate Democrats and one Independent joined Senate Republicans to pass a continuing resolution (CR) that would extend fiscal year (FY) 2025 funding through January 30, 2026. As a reminder, FY 2025 was enacted under a year-long CR, funding the federal government with FY 2024 levels. Senate Republicans managed to wrangle the necessary 60 votes with support from Minority Whip Dick Durbin (D-IL), Tim Kaine (D-VA), Maggie Hassan (D-NH), Jeanne Shaheen (D-NH), Catherine Cortez Masto (D-NV), Jacky Rosen (D-NV), John Fetterman (D-PA), and Angus King (I-ME). Several concessions were reportedly made to secure the agreement, including a verbal promise to vote on the Affordable Care Act (ACA) subsidies before their expiration at the end of December. Also included in the bill is new language that would guarantee backpay for federal employees furloughed during the government shutdown, reverse the Trump Administration’s mass layoffs since Oct 1, and prohibit mass federal terminations until FY 2026 funding can be passed through regular order. Sen. Jeff Merkley (D-OR) proposed an amendment to limit the President’s ability to enact pocket recessions, but it failed in a 47-53 vote along party lines.

With the Senate’s stamp of approval, the new proposal will need to be passed without revisions or amendments by the House. As previously reported by COSSA, House Republicans have not been in session since they advanced their initial CR in September in an unprecedented strategy to force concessions from the Senate Democrats. However, House Speaker Mike Johnson (R-LA) has called House Republicans back to the Hill, offering a 36-hour window for necessary travel time. On the other side of the aisle, House Democrats have largely criticized the new spending package, with Minority Leader Hakeem Jeffries (D-NY) reiterating the necessity of advancing an extension of the ACA subsidies. While House Republicans have the majority needed to pass any final agreement along party lines, it’s unclear whether they will be willing to agree to the Senate Republicans concessions. Further, while Senate Republicans have promised to take up the measure in a non-binding, verbal agreement, House Speaker Johnson has not indicated intent to do the same, leaving many uncertain whether a vote would happen at all. Any final agreement would also require the signature of the President, who has yet to formally comment on the new package.

In other news, with the end of the longest government shutdown in history potentially in sight, the Senate is turning its attention back to the FY 2026 appropriations bills. According to Senate Majority Leader John Thune (R-SD), the Senate is set to consider the Defense, Labor, Health and Human Services, and Education (LHHS), Commerce, Justice, and Science, and Transportation, and Housing and Urban Development (HUD) bills as early as next week. The bills would be packaged into one minibus, using the Defense bill as a vehicle to pass the other, more controversial bills. Still, the minibus may face several hurdles, including disagreements over language to prevent pocket recissions, as proposed previously by Sen. Merkley.

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