Federal Update: Government Funding Showdown Heats Up
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This week, the House Appropriations Committee advanced its final two fiscal year (FY) 2026 spending bills – covering Labor-Health and Human Services and Commerce-Justice-Science (CJS). Both measures were approved largely along party lines and are now cleared for floor consideration. The House proposals reflect significant cuts compared to current funding levels. By contrast, the Senate has advanced its versions of these bills on a bipartisan basis without the same level of reductions.
FY26 CJS Spending Bill
Overall Discretionary Funding: $76.8 billion (Down 2.8%)
Department of Justice: $37.3 billion (Up 1%)
Department of Commerce: $10.1 billion (Down 2.5%)
A committee summary of the bill is available here.
FY26 Labor-HHS Spending Bill
Overall Discretionary Funding: $184.5 billion (Down 7%)
Department of Health and Human Services: $108 billion (Down 6%)
Department of Labor: $9.6 billion (Down 28%)
Department of Education: $67 billion (Down 15%)
A committee summary of the bill is available here.
With just three weeks remaining in the federal fiscal year, Congress remains at an impasse over how to keep the federal government funded beyond September 30. Unlike in past years, the debate is not breaking down strictly along party lines, complicating efforts to reach a deal.
For their part, fiscal conservatives are aligning with the White House in support of a stopgap measure that would extend current funding levels into January or longer. Democrats and moderate Republicans, by contrast, are advocating for a shorter extension into November or December to allow more time for a bipartisan funding agreement.
Appropriators have also floated a hybrid approach that would provide full-year funding for certain departments – such as USDA, Veterans Affairs, and congressional operations – while temporarily extending current levels for others. In fact, and to that end, House Appropriations Committee Chairman Tom Cole (R-OK) offered a motion to move the House to conference with the Senate on three (of the 12) spending bills – Agriculture, Military Construction and Veterans Affairs, and the Legislative Branch.
Meanwhile, health care policy has emerged as a new wrinkle in negotiations. Democratic leaders insist that any short-term spending deal must include an extension of Affordable Care Act premium tax credits that are set to expire at the end of the year. Republicans remain divided. While some conservatives oppose extending the credits, moderates – particularly those from swing districts – are concerned about the impact on their constituents. For its part, the nonpartisan Congressional Budget Office estimates that roughly five million Americans could lose coverage by 2034 if the credits lapse. It should be noted that Representatives David Valadao (R-CA) and Young Kim (R-CA) have co-sponsored bipartisan legislation (H.R. 5145) to extend the credits for another year.
House Panel Discusses Permitting Reform
Earlier this week, the House Natural Resources Committee held a legislative hearing on the Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776). The bill, introduced just before the August recess by committee Chairman Bruce Westerman (R-AR) and Congressman Jared Golden (D-ME), has attracted some bipartisan interest. The proposal is part of a broader congressional effort to update the federal permitting process following a recent Supreme Court decision that narrowed the scope of reviews under the National Environmental Policy Act (NEPA).
H.R. 4776 proposes several changes intended to streamline permitting. These include expanding categorical exclusions, extending the use of programmatic environmental documents, setting firm deadlines for agency action, and limiting judicial review timelines. Supporters argue these reforms would provide greater certainty and accelerate project approvals, while critics caution that changes could limit environmental oversight and opportunities for public input.
The debate also reflects broader political dynamics. While some Democrats on the committee expressed openness to easing federal review requirements to support energy development, others voiced concerns about how the reforms would be implemented and their potential impact on renewable energy projects. Chairman Westerman emphasized that the bill is designed to be “technology- and project-neutral,” with the goal of creating a more transparent and consistent process that avoids policy swings from one administration to the next.
While the SPEED Act reflects a broader push in Congress to overhaul permitting rules, the path forward remains uncertain. While the legislation is likely to advance through the House, its more sweeping reforms may face resistance in the Senate, where bipartisan talks are centered on a narrower package of permitting changes.
The committee has circulated a section-by-section summary and a one-pager on the bill.
New Bill Aims to Strengthen Emergency Alert Systems
Last week, Congressmen Kevin Mullin (D-CA) and Randy Weber (R-TX) introduced legislation – the Resilient Emergency Alert Communications and Training (REACT) Act (H.R. 5154) – that would direct FEMA to provide more federal resources for local emergency officials to improve their alert and warning systems.
The bill responds to longstanding concerns about gaps in public warning capacity, particularly during fast-moving disasters such as wildfires, hurricanes, and severe storms.
Under the legislation, FEMA would be directed to:
- Offer technical assistance to state and local governments to improve emergency alert capacity and effectiveness
- Help develop evidence-based alert message templates and public education campaigns explaining how the those experiencing a disaster should respond
- Publish an annual report tracking which communities are conducting exercises, testing and public education of emergency alert systems
- Authorize $30 million annually through 2035 to support field training, live testing, and community-based exercises of alert systems
Bipartisan Legislation Targets Agriculture Workforce Shortages
Last week, Representatives Brad Finstad (R-MN) and Chellie Pingree (D-ME) introduced bipartisan legislation – the Agriculture Skills Preparation for Industry Recruitment Efforts (ASPIRE) Act (H.R. 5138) – aimed at strengthening the pipeline of workers in the agriculture and farming sector. The bill comes amid growing concerns about labor shortages across rural communities and the need to attract younger generations into agriculture.
Specifically, the ASPIRE ACT would:
- Establish an agriculture workforce training program within USDA’s existing Beginning Farmer and Rancher Development Program;
- Provide resources for eligible schools to grow the ag industry, boost competitiveness, and strengthen workforce training and retention; and,
- Support apprenticeships, internships, and partnerships with local ag businesses, creating pathways to pursue higher education or the private farming sector.
Senator Tina Smith (D-MN) has sponsored companion legislation (S. 2727) in the Senate.