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
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