In a last-minute effort to avert a government shutdown, Congress passed a stopgap funding bill on Wednesday, keeping federal agencies funded until December 20. This move defied calls from former President Donald Trump, who had pushed for Republicans to shut down the government unless they passed measures to prevent noncitizens from voting.
While some conservatives were prepared to take that route, the bipartisan bill now heads to President Joe Biden’s desk, with Biden expected to sign it quickly and prevent any funding lapses before Election Day.
For weeks, Speaker Mike Johnson had explored a more partisan solution, in close consultation with Trump, who publicly urged him to use the budget standoff as leverage. Ultimately, however, Johnson argued to his Republican colleagues that a shutdown just before the election could backfire at the polls, costing them crucial votes. “I’m not defying President Trump,” Johnson explained, adding that he believed the former president understood the political stakes.
This funding bill is narrow in scope, meaning it only covers essential budget needs, leaving most major spending issues unresolved. Agencies will continue to operate under their current budgets, which delays critical new funding the Biden administration has been advocating for, such as tens of billions for veterans’ benefits and FEMA’s disaster relief fund, which is already stretched thin by reconstruction efforts in Maui and other areas hit by natural disasters. Although the patch does direct around $20 billion to FEMA, other needs, such as $2 billion for Pentagon submarine acquisitions, remain unfunded for now.
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The timing of this bill sets up a complex December deadline, when the results of the November election will shape the direction of a potentially contentious spending showdown. If Trump or Vice President Kamala Harris wins the presidency, either would be in a position to influence whether Congress finalizes a spending deal or delays further negotiations until the next administration takes office.
House Appropriations Chair Tom Cole noted that the election’s winner will have a significant say in whether their party pursues a deal in December or defers funding until the new president is inaugurated.
Once the dust settles after Election Day, bipartisan talks are anticipated to begin on establishing a “topline” funding agreement, setting the budget for both defense and non-defense programs. With razor-thin majorities expected in the Senate, any funding solution will require cross-party compromise. As Sen. Jon Tester (D-Mont.) emphasized, pushing off funding decisions could harm national security and end up wasting taxpayer dollars.
If Congress fails to reach a budget consensus by the new year, fiscal negotiations could collide with two additional pressing financial issues: the debt limit, which will need attention by early January, and the impending expiration of many 2017 tax cuts at the end of next year. Fiscal conservatives, led by voices like Rep. Chip Roy (R-Texas), are already signaling that they want these three issues—budget, debt, and taxes—addressed together. “It’s going to be a central conversation,” Roy said, underscoring the importance of linking tax policy and spending measures in a broader plan to control the nation’s debt.
