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Congress Home for the Holidays

After a busy week, Senators huddled on the floor Thursday night as they made an eleventh-hour attempt to find a path forward on bringing up a bundle of five bills or minibus for consideration before the end of 2025. No agreement to move forward was reached after Senators Michael Bennet and John Hickenlooper, both of Colorado, announced they would hold up the package after White House OMB director Russ Vought’s decision to dismantle the National Center for Atmospheric Research, which is based in Colorado.

 

The package under consideration in the Senate would fund the Departments of Defense, Education, Housing and Urban Development, Commerce (including NOAA), Health and Human Services (including NIH), Transportation, Labor and Interior, along with the EPA and NSF.

A few Republican Senators have held the bill from moving forward but released a hold after Senate leadership agreed to an amendment vote on stripping earmarks in the legislation. The Colorado hold is new to the OMB decision.

The Senate will resume consideration and negotiations in January.

 

 

FY26 NDAA Conference Bill is Released

Conferees released the FY26 National Defense Authorization Act (NDAA) was released this week.

H.R. 3838, the Streamlining Procurement for Effective Execution and Delivery and National Defense Authorization Act for Fiscal Year 2026 is the final version before final House and Senate passage and the measure goes to the President to become law. The plan would authorize $900.6 billion in national security spending which is $8 billion more than what was in the president’s budget request. In comparison, the FY25 NDAA was $924.7 billion.

The measure contained a provision which would prohibit the Department from modifying indirect cost rates to higher education or nonprofit organizations without prior consultation by those groups and with establishing an implementation plan adequate transition time to change budgeting and accounting processes.

It includes language to repeal the 2002 Iraq War and 1991 Gulf War Authorizations of Military Force.

Also included were limits on reducing troops in Europe and South Korea and $400M for Ukraine security assistance.

The measure did not contain the SAFE Research Act, which was included in the House-version of the NDAA. The SAFE Research Act would have prohibited all federal research agencies from supporting researchers who collaborate with “foreign adversaries,” such as graduate students who were from certain countries of interest or association with certain institutions. The measure used a 5-year lookback with retroactive penalties to researchers. Included in “collaboration” would have included research agreements, study abroad programs, conference participation, university facilities abroad, etc.

Also out are the proposed IVF expansion and controversial base renaming provisions.

Conference Resources:

FY26 NDAA Conference Text Legislative Summary

FY26 NDAA Conferenced Bill Full Text

FY26 NDAA One Pager

The House is expected to pass the measure this week, and the Senate is expected to pass the same measure by the end of the year. When passed, this will the the 65th year the annual authorization bill has passed.

Shutdown Officially Ends

After 43 days, the longest government shutdown in U.S. history has officially ended. President Donald Trump signed a funding bill late Wednesday night, just hours after the House passed it 222–209. The bill restores government operations through January and provides full-year funding for select agencies, including SNAP, which had been disrupted during the shutdown.

Despite Republicans’ narrow House majority, six Democrats crossed party lines to support the measure: Henry Cuellar of Texas, Don Davis of North Carolina, Adam Gray of California, Jared Golden of Maine, Marie Gluesenkamp Perez of Washington, and Tom Suozzi of New York. Two Republicans—Thomas Massie of Kentucky and Greg Steube of Florida—voted against it.

The bill includes backpay for federal workers and reverses layoffs imposed during the shutdown. However, it does not address Democrats’ key demand: extending enhanced Affordable Care Act subsidies set to expire at year’s end. Instead, Senate Majority Leader John Thune pledged to hold a vote on that issue in December—a promise many Democrats view with skepticism.

The shutdown, triggered by a standoff over healthcare subsidies, left millions without food aid, grounded flights, and forced federal employees to work without pay. In the end, Democrats did not gain any policy concessions, and the government reopened under deal that may or may not deliver on healthcare reform. With funding set to lapse again in January, Congress faces another deadline for full-year funding bills.

The End is in Sight

The longest government shutdown in U.S. history is poised to end, with the House of Representatives scheduled to reconvene at approximately 4 p.m. Wednesday to vote on a funding bill passed by the Senate earlier this week.

The Senate measure advanced with the support of all Republican senators and a group of eight Democrats, a move that has sparked intense backlash from progressive activists and deepened divisions within the Democratic caucus. While the bipartisan support helped propel the bill forward procedurally, most Senate Democrats remain staunchly opposed to the package, citing concerns over spending priorities and the exclusion of key Democratic provisions.

In the House, the funding bill faces similar resistance from Democratic lawmakers. Despite this, Speaker Mike Johnson has expressed confidence that the measure will garner sufficient Republican support to pass, effectively ending the shutdown that has paralyzed federal operations for weeks.

The proposed legislation includes a short-term extension of funding for most federal agencies through January 30, 2026, providing a temporary reprieve while negotiations continue on broader appropriations. In addition to the stopgap funding, the package incorporates three full-year appropriations bills covering:

  • Military Construction and Veterans Affairs: Ensuring continued support for infrastructure projects and essential services for veterans.
  • Agriculture and the Food and Drug Administration (FDA): Funding critical programs related to food safety, rural development, and agricultural subsidies.
  • Legislative Branch Operations: Maintaining the functioning of Congress and its support agencies, including staff salaries and administrative services.

House Democrats are expected to introduce an amendment aimed at extending Affordable Care Act (ACA) tax credits for an additional three years—a provision that has broad support among the party’s base. However, the amendment is unlikely to pass given the Republican opposition.

One Small Step…

Last evening, by a vote of 60-40, the Senate finally agreed proceed on a legislative package that would, among other things, reopen the government. This represents the first step of many that would fund  and reopen the government.

After more a dozen failed procedural votes, the Senate was finally able to reach the 60-vote threshold on a proposal to move forward: In addition to legislation to reopen the government that includes backpay for federal workers, the agreement also includes a December vote to extend Obamacare subsidies.

Among other items, the legislative package that the Senate agreed to debate on includes: 

  • Three of the twelve full-year appropriations bills:  Agriculture; Legislative Branch; and Veterans Affairs;
  • a continuing resolution (CR) to fund the other parts of the government through January 30;
  • backpay for furloughed federal workers; and,
  • a prohibition on additional reductions in the federal workforce through the length of the CR.

Eight Democrats joined the vast majority of the Republicans in moving the proposal forward while one Republican opposed the move.

This agreement does not mean that the Senate has officially voted to approved the measure.  It just means that the Senate can now proceed to consider the package. 

In addition, if the Senate does ultimately approve it, the House– which has been in recess since September 19– must reconvene to pass it as well.  Finally, assuming both chambers agree, the final measure must be signed by the President.

At the end of the day, the Senate agreement to move forward represents the first step in a longer process to reopen the government.