Congress is nearing an agreement on a three-bill Fiscal Year 2026 funding package that would include full-year appropriations for Commerce-Justice-Science, Interior-Environment, and Energy-Water. The House passed the bill by a vote of 397-28 on January 8, and the Senate is also expected to approve the measure. If approved, those agencies would join Agriculture, Military Construction/VA, and the legislative branch with full funding.

The $180 billion package includes: approximately $81 billion for Commerce-Justice-Science, $38.6 billion for Interior-Environment, and $63.3 billion for Energy-Water.

Speaker of the House Mike Johnson (R-LA) said the three-bill spending package spends “less than another continuing resolution,” delivers critical priorities for members, and advances President Trump’s America First agenda. House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) referred to the package as “an important first step,” and said it is “a forceful rejection of draconian cuts to public services.”

The six remaining FY26 spending bills – including funding for the Department of Defense – must be completed in the coming weeks, as the current Continuing Resolution (CR) funds them through January 30. However, there is renewed optimism these six spending bills will be resolved. Legislators on both sides of the aisle have expressed a desire to prevent another government shutdown on the heels of the lapse in funding in October 2025 that led to the longest government shutdown in United States history.

Funding the government is a “primary function of the U.S. Congress and there is no excuse for a lack of appropriations causing a shutdown,” FMA National President Craig Carter said. “FMA implores legislators on both sides of the aisle to work in a bipartisan fashion and negotiate in good faith to reach agreement in funding the remainder of FY26 well in advance of January 30 when much of government funding will expire.”

In perhaps a preview of the negotiations for Fiscal Year 2027 appropriations, on Wednesday January 7, President Trump called for $1.5 trillion in defense spending in the approaching fiscal year. Trump made a post on his Truth Social media platform, writing that the $1.5 trillion figure would provide for the United States to build a “dream military.” While defense appropriations have not yet been solidified for FY26, the proposed $1.5 trillion figure for FY27 would be approximately $500 billion more than anticipated for this year, based on defense appropriations and funding included in the “One Big Beautiful Bill.” President Trump attributes the ability for the increase in spending to “tremendous income” resulting from tariffs.