High risk of US government shutdown again in early 2026
The US government is at high risk of shutting down as it is only temporarily funded until January 30, 2026, but only 3/12 budget bills have been passed.
After a prolonged budget hiatus, much of the US government is operating on temporary funding that expires on January 30, 2026. This opens a new round of negotiations between the White House and Congress, as a series of key bills remain unpassed.
The latest bipartisan deal covers just three of the 12 bills needed to keep the federal government running. The bills passed cover veterans, food aid, farm assistance and congressional spending. The total spending represents just 10 percent of the $1.8 trillion annual budget.
The remainder must continue to use the budget established from March 2024, when the previous administration was still in operation.
The failure to agree on bills related to defense, public health and sensitive policies makes budget allocation difficult.
House Majority Leader Steve Scalise said a solution needs to be found through individual budget bills, but internal divisions have slowed progress.
US lawmakers have until January 30, 2026, to pass a full budget. If they fail, the government could shut down or revert to an old budget that is nearly two years old.
Some Democratic lawmakers have warned they are prepared to accept a government shutdown if a deal on ACA insurance subsidies is not reached.
Disagreements immediately emerged after the three bills passed. Congresswoman Rosa DeLauro said last weekend's negotiations cut the House out of the process and added controversial provisions.
The Senate plans to move forward with bills that fund the military and the departments of Education, Commerce, Labor, Health and Human Services, Interior, Transportation, Justice, and Housing and Urban Development. All must pass the 100 senators before moving to the compromise stage with the House.
Several bills continue to be embroiled in disputes, such as the energy bill that caused disagreement between Senate Budget Committee Chairwoman Susan Collins and Senator John Kennedy, or the Department of Homeland Security bill related to President Donald Trump's immigration policy.
Additionally, agencies like the Department of Energy, State, Homeland Security, Treasury and IRS may have to adopt temporary budgets through September 2025.
Democratic leaders asserted that Congress is the only body with the power to allocate budgets and criticized the use of $600 million for migrant detention activities that are not for the purposes approved by Congress.
Many lawmakers acknowledge that achieving a bipartisan long-term budget is a major challenge, especially given deep partisan divisions.
The risk of a government shutdown in early 2026 remains as most of the new fiscal year budget bill remains pending.
