Week ahead in Congress predicted to be notable and argumentative, as fireworks are not confined to the 4th of July.
The US Senate has passed a historic $9.4 billion rescission package, marking the first successful use of this budget-cutting tool in 25 years. The package, which was signed into law by President Trump on July 18, 2025, rescinded funding that had previously been authorized for the 2025 fiscal year, with about $7.9 billion coming from foreign aid and $1.1 billion from public broadcasting[1][2][3].
However, the passage of this package has created tension and uncertainty around future budget negotiations. Congressional Democrats, including Senate Appropriations Committee members like Patty Murray, have expressed concerns that this package could undermine bipartisan appropriations processes going forward[2][4][5]. The White House, led by Director Mick Mulvaney at the time and later OMB Director Vought, has hinted at further rescissions or budget clawbacks, increasing partisan disputes over spending priorities and the process itself[5].
As the new fiscal year deadline (October 1) approaches, the rescission package's cuts have aggravated partisan tensions over federal spending, especially between Republican leadership pushing for more aggressive spending reductions and Democrats seeking to restore or protect funding[2][5]. If Congress cannot reach agreement, a government shutdown could occur, halting non-essential federal operations until a funding deal is reached[4][5].
The upcoming federal funding deadline requires Congress to agree on appropriations bills or pass a continuing resolution. Given the tensions heightened by the rescission and ongoing disputes, the risk of failing to pass necessary funding is high[4][5]. The House and Senate remain divided on key spending bills, such as the State-Foreign Operations bill, and with deadlines looming, Congress may resort to passing a continuing resolution to maintain government funding temporarily[5].
Democrats are expected to hold firm against the rescission package due to their own anger and public frustration. The newly confirmed Office of Personnel Management director, Scott Cooper, will be under pressure to continue bringing about cuts in the federal workforce, with plans to make the approach to federal workforce cuts more organized[6].
The conflict over the rescission package is particularly significant in the case of the Environmental Protection Agency (EPA). More than 139 EPA employees have signed a letter of dissent against new leadership policies, with the decision on whether they will remain on administrative leave coming up soon[7]. The Senate Appropriations Committee's original vote to approve the overall bill has been reversed due to an amendment by Sen. Van Hollen of Maryland, who has put up an amendment that the money for the Justice Department and Commerce will not be approved until the money is allocated for the FBI headquarters in Greenbelt, Maryland[8].
Senate Majority Leader John Thune can only afford to lose three Republicans in the Senate to pass the rescission package, but there are several Republicans on the fence, including Susan Collins, Lisa Murkowski, and Mike Rounds[9]. A compromise is needed between the Senate Appropriations Committee and the Maryland delegation to move forward with the appropriations bills[9].
President Trump has threatened to not endorse the next election of any Republican who does not vote for the rescission package. Maryland and Virginia lawmakers, including Reps. Glenn Ivey (D-Md.), April McClean Delaney (D-Md.), and Don Beyer (D-Va.), have gotten involved to support the EPA employees[10]. Moderate Republicans are concerned about the cutbacks that originated with the Department of Government Efficiency, with Russell Vought discussing ways to streamline these cuts more traditionally[11].
Senate Minority Leader Chuck Schumer has indicated that a passage of the rescission package could lead to a government shutdown. If a compromise is not reached, the appropriations process could cause problems down the line and potentially lead to a government shutdown[12]. The AFGE union has gotten involved and is looking at their options to fight the administrative leave decisions. The Senate has until Friday to pass President Trump's $9.4 billion rescission package[13].
Federal workforce concerns have arisen due to the passing of the historic rescission package, as the newly confirmed Office of Personnel Management director, Scott Cooper, is under pressure to make cuts in the federal workforce.
Politics have heightened around the federal workforce, with senators like Patty Murray expressing concerns that the rescissions could undermine bipartisan appropriations processes going forward.
