US Congressional leaders agree upon a temporary budget measure, as per confidential sources.
U.S. Congress Agrees on Two-Stage Stopgap Spending Bill to Avoid Government Shutdown
In a bid to prevent a potential government shutdown, U.S. congressional leaders have reached an agreement on a two-stage stopgap spending bill. This bill is designed to extend federal government funding into March 2026.
The first stage of the agreement, which was passed earlier, extended government funding through September 30, 2025, to avoid a shutdown. The second stage, a newly agreed stopgap, extends federal funding into March 2026.
The continuing resolutions, such as this one, typically fund the government at existing or near-existing levels temporarily, often reflecting prior fiscal year spending levels.
The agreement was necessary as the full suite of 12 annual appropriations bills has not yet been passed. The Senate has passed several bills with bipartisan support, often reflecting modest spending increases, while the House Republicans have generally pushed for significant spending cuts aligned with President Trump’s “skinny budget” priorities.
The stopgap avoids a government shutdown that would otherwise occur if funding lapses at the end of September and buys more time for Congress to finalize appropriations bills with bipartisan agreement, requiring 60 Senate votes to overcome filibuster.
The multi-month extension into March 2026 also addresses concerns about statutory PAYGO rules that could trigger automatic spending cuts like cuts to Medicare if Congress does not act to offset increased deficits by February 2026.
Key agencies, such as the Defense Department, face a deadline on February 2, while funding for certain federal agencies, such as the Department of Transportation, is set to expire on January 19. The stopgap funding bill does not affect these deadlines.
Details of the spending deal are expected to be available online on Sunday, according to a spokesperson for Senate Democratic Majority Leader Chuck Schumer. The stopgap funding bill is expected to be passed by the Senate in the coming week.
This two-part approach avoids a shutdown at the fiscal year-end and delays contentious budget negotiations until after the upcoming midterm elections. The U.S. narrowly avoided a partial government shutdown last autumn due to opposition from hardline House Republicans. This current stopgap funding bill is a new development in the ongoing process to avoid a potential government shutdown.
- As the full suite of annual appropriations bills has not been passed, the agreement on a two-stage stopgap spending bill serves as a necessary policy-and-legislation move to prevent a government shutdown, particularly the segment that extends federal funding into March 2026.
- The continued discussions on politics surrounding budget negotiations will undoubtedly be focused on the second stage of the stopgap spending bill, given its extension into March 2026, and the potential impact on general-news topics such as funding for key agencies and statutory PAYGO rules.
