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FMA Washington Report: August 8, 2025
Partial Government Shutdown or Continuing Resolution Looms

With just 14 legislative days scheduled between now and the end of Fiscal Year 2025, a partial government shutdown or a continuing resolution appears likely. Some in Congress are already advocating for a full-year CR to fund Fiscal Year 2026, which begins on October 1, 2025.

The government is currently running on a continuing resolution that expires on September 30.

Prior to leaving for the August recess, Republicans in Congress passed the Trump Administration’s recissions package over loud objections from Democrats, which claws back $9.4 billion the body had previously appropriated – approximately $8.3 billion in foreign aid $1.1 billion for the Corporation for Public Broadcasting (CPB). As a result, the CPB, which supports more than 1,500 locally owned and operated public radio and television stations across the country, such as the Pubic Broadcasting Service (PBS), announced in an August 1 press release that it will “begin an orderly wind-down of its operations.” Office of Management and Budget (OMB) Director Russ Vought said additional recission packages to rescind more congressionally appropriated funds are likely in the future.

Further complicating matters is a clash between Democrats and President Trump over confirmations for nominations for various posts. Democrats are demanding that Trump remove a freeze on more than $1 billion in funds already appropriated, primarily to the National Institutes of Health.

Republicans have slim majorities in both the House and Senate, in addition to control of the White House, and will have a handful of weeks to keep the federal government operating upon Congress’ return to Washington, D.C.

Sen. Chuck Schumer (D-NY) and Rep. Hakeem Jeffries (D-NY), the minority leaders of the two legislative branch chambers, sent a letter to their Republican counterparts earlier this week requesting a meeting to work on a strategy to avoid a government shutdown. “Today, we wish to reiterate that we should pursue a bipartisan path – you can work with us to protect health care for the American people and chart a better course for this country,” the legislators wrote.

At least one top official in the administration called for a less-bipartisan appropriations process. At a recent breakfast Office of Management and Budget Director Russ Vought called for a more partisan approach to funding the federal government. “Who ran and won on an agenda of a bipartisan appropriations process?” Vought asked. “Literally no one.”

Members of Congress, including Republican Senator Lisa Murkowski (R-AK), swiftly condemned these remarks, saying the OMB Director “disrespects” the government funding process. Minority Leader Schumer called Mr. Vought “a very grave danger” to democracy, and called for his termination.

Despite the inflammatory rhetoric, the Senate did approve its first three spending bills for Fiscal Year 2026 before leaving for its August recess. The chamber approved a package funding Military Construction-VA and the Department of Agriculture by a vote of 87-9 and a bill funding the legislative branch by a vote of 81-15.

“It’s taken a great deal of work, good faith and negotiation to get to this point,” said Senate Appropriations Chair Susan Collins (R-ME. “Congress has a responsibility, a constitutional responsibility under Article I, for the power of the purse. We are executing that responsibility.”

The House has passed two appropriations bills: Military Construction-VA and Defense.

While there is some progress, there will be little time remaining next month to bring these and the remaining bills across the finish line. And the possibility – probability? – of another recissions package from the administration would further complicate matters in the remaining days of FY 2025.

We will keep FMA members apprised on all Fiscal Year 2026 updates.

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