House and Senate appropriators Sunday released two more fiscal 2026 funding bills while contentious debates are expected for the four remaining bills that Congress will need to pass to avoid another government shutdown on Jan. 30.
The two-bill package released late Sunday would cut $1 billion to the Internal Revenue Service, keep Treasury Department funding flat and require the Office of Management and Budget to estimate the budgetary impacts of presidential executive orders.
Lawmakers also included money for Washington, D.C. and directed the Inspector General to oversee pandemic programs like COVID relief payments that send money to states and local governments.
The
The Senate on Monday is expected to take the first procedural step on the
The latest spending package funds the Financial Services and General Government and National Security and Department of State. It was originally expected to include the Department of Homeland Security but talks stalled after the fatal shooting of a Minnesota woman by an immigration and enforcement officer last Wednesday.
Lawmakers may end up funding Homeland Security through a continuing resolution, according to some reports. The next round of appropriations bills will fund two of the largest agencies, Defense and Labor-Health-and-Human Services-Education as well as Transportation-Housing.
The two-bill compromise package released Sunday totals $76 billion to fund the Departments of State and Treasury, the IRS, the District of Columbia and the federal judiciary. The IRS would receive $11.2 billion, which is $1.7 billion above the Republican House proposal. That includes $5 billion for enforcement, according to
The compromise bill rejects the Trump administration's effort to claw back another $16.5 billion in IRS funding that is part of the
"I am proud of the work that was done to produce this package," House Appropriations Committee Ranking Member Rep. Rosa DeLauro, D-Conn., said in a statement. The package "continues efforts to rein in the Trump Administration through new requirements on the use of funds and increased transparency measures."
Funding for Treasury totals $26.3 billion, roughly flat to 2025 levels but $3.1 billion above House GOP levels.
The bill sets aside $878 million for Washington, D.C., $12 million above fiscal year 2025. Democratic appropriators said the bill "respects" D.C. by including language that "automatically lets the District use local funding under a continuing resolution and doesn't include any new riders limiting the District's home rule."
The financial services bill requires all 2026 presidential executive orders to be accompanied by an OMB statement about the budgetary impact, including costs, benefits, and revenues on federal agencies and the revenues of the federal government over a five-year fiscal period.
