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Senate leaders reach funding deal to avoid government shutdown
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Senate leaders reach funding deal to avoid government shutdown

Aug 2, 2026

Senate leaders reached a deal on a short-term spending bill to fund the government through Dec. 11, avoiding a shutdown before the midterm elections. The bill, which awaits a vote, excludes a $1B request for "Trump-class" battleships and temporarily blocks a controversial rule that would allow political appointees to review federal grants based on the president's policy priorities.

Short-term funding bill

  • ▪Key senators unveiled a short-term spending bill on August 2, 2026, to keep federal agencies funded past the midterm elections
  • ▪The bill does not include the administration's $1 billion request for "Trump-class" battleships and prevents transferring funds to the Border Patrol
  • ▪The Senate is expected to vote on the measure before its traditional August recess, which lawmakers want for campaigning
  • ▪The bill funds the federal government at current levels through December 11

Previous government shutdowns

  • ▪Senate Majority Leader John Thune noted that Americans have experienced two record-breaking government shutdowns in the past 10 months
  • ▪Both parties aim to avoid a shutdown before the polls, as polling showed neither party evaded blame for a previous 43-day shutdown
  • ▪A previous spending battle over funding for the Department of Homeland Security took 76 days to resolve

Appropriations negotiations

  • ▪A short-term extension is needed because Congress has struggled to approve the dozen annual appropriations bills before the September 30 deadline
  • ▪President Trump also called for boosting defense spending by approximately 44%
  • ▪For full-year funding, Republicans seek a dramatic increase in defense spending, while President Trump proposed a 10% cut in non-defense programs

Grant politicization rule

  • ▪Sen. Susan Collins cited the rule's potential to politicize grants and harm communities, families, and biomedical research
  • ▪Democrats fear the grant rule would be used to punish political foes, while the White House says it is about accountability
  • ▪The proposed rule would require a senior political appointee to review grant proposals to ensure they "advance the President's policy priorities."
  • ▪The stopgap spending bill will prevent a proposed Trump administration rule on federal grants from taking effect

2 sources

Huffpost
Senate Leaders Reach Funding Deal To Avoid Shutdown During Campaign Season
View source article
Abcnews
Senate leaders reach funding deal to avoid shutdown during campaign season
View source article

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United States

Topics

Government fundingCongressUS midterm electionsUS Senate