Following the annual August and Labor Day recesses, Congress faces a packed fall agenda.
Keeping operations going through December
At the beginning of each year, the president submits budget priorities while Congress prepares to direct federal spending through the appropriations process. The president’s budget request outlines the president’s priorities by indicating to lawmakers the desire to increase, decrease, or maintain funding levels for programs across the federal government. The budget request is nonbinding but is an indicator of a president’s spending priorities. Congress considers the request while drafting the 12 separate appropriations bills that fund the federal government. Each bill makes its way through its respective appropriations subcommittee, receiving legislative hearings and markups.
Notably, Congress has not passed all 12 appropriations bills by the fiscal deadline, Sept. 30, since fiscal year 1998. For nearly 30 years, Congress has passed short-term continuing resolutions that keep the government funded at prior fiscal year levels so agencies can continue to function while Congress works through the process of finalizing appropriations. In effect, a continuing resolution buys lawmakers time to come to an agreement on a larger funding package that includes the appropriations bills, often called an omnibus, or a series of smaller minibus packages. During an election year, continuing resolutions also provide legislators with time and cover to avoid particularly challenging votes, such as cuts to popular programs that could prove difficult to defend back home.
For FY 2027, Congress has once again followed the continuing resolution path. Ahead of the August recess, the House had passed a continuing resolution that kept federal funding in place through Dec. 4. The Senate passed a different version extending funding through Dec. 11, with additional provisions referred to as riders. Ultimately, the Senate’s version won out, with the House approving it Sept. 1 and the president signing it Sept. 2.
Reconciliation bill heads to the Senate
The House has also passed a budget resolution. A budget resolution establishes a framework for Congress to consider budgetary measures, sets out spending and revenue levels, and includes instructions for reconciliation legislation. Notably, the resulting legislation—often simply referred to as a reconciliation bill—is considered through expedited procedures. It only needs a simple majority to pass the Senate, avoiding the requirement to secure 60 votes to break a filibuster.
A reconciliation bill is subject to rules that restrict the scope to budget-related matters. In the Senate, this is referred to as the “Byrd bath,” a parliamentary procedure intended to strip language that does not meet the strict budget reconciliation requirements. Both parties use this mechanism to pass legislation, particularly when the policies being considered are unlikely to secure bipartisan support. The continuing resolution, on the other hand, is not filibuster-proof and requires 60 votes to pass the upper chamber.
The House’s budget resolution, which is the third being considered this Congress, outlines $95 billion in new spending, including $73 billion for the Iran war, $12 billion for farm aid, and $10 billion to incentivize states to impose stricter voting ID requirements. After canvassing his caucus, Senate Majority Leader John Thune (R-S.D.) has expressed doubts that the measure sent over from the House has the votes to pass the Senate. Additionally, Senate Republicans have said several of the bill’s provisions are unlikely to survive a Byrd bath. The Senate has not considered its own alternative resolution, and, to date, there is no plan for it to consider the House-passed version.
President Donald Trump considers the reconciliation bill a top priority, and he will likely continue to encourage Senate Republicans to advance the measure.
Looking ahead to fall session and lame duck
Because both chambers successfully reconciled the continuing resolution, government funding will remain at current levels until December once the resolution becomes law, providing short-term predictability for federal programs. Lawmakers will now begin negotiating omnibus or minibus spending packages that will fund the government through September 2027.
Because the December continuing resolution deadline falls after the November midterm elections, the House and Senate will factor in the results as they work to complete legislation in the 119th Congress. If Republicans lose one chamber, Trump and the GOP will no longer be able to pass legislation in the 120th Congress solely along party lines. As such, the fall session would be Trump’s last chance to pass top partisan priorities, including reconciliation and any other major initiatives.
