The House Appropriations Committee has passed all twelve funding bills for Fiscal Year 2027, and the full House of Representatives has passed two of the 12 funding bills (Agriculture and Military Construction/VA) needed to fund the coming fiscal year. There are 23 legislative days scheduled before the start of Fiscal Year 2027.

Following committee passage of Defense appropriations, House Appropriations Committee Chairman Tom Cole (R-OK) said, "Reporting all 12 of our FY27 bills out of full committee is proof that regular order still works when Congress commits itself to the task. Our dedicated cardinals and members have engaged, deliberated, and delivered on behalf of their constituents and the nation. They've balanced priorities, exercised careful stewardship, and advanced legislation that strengthens U.S. security, prosperity, and future.” In addition to the 12 FY27 funding bills, the committee is also reviewing a formal request from the White House for supplemental defense funding of $87.6 billion to replenish weapon stockpiles and further boost national security resources.

The Senate Appropriations Committee has delayed consideration of FY27 funding bills several times this summer, although it is expected to begin tackling the bills when it returns following the Independence Day Work Period on July 13. We will continue to monitor developments on funding for Fiscal Year 2027, including any potential continuing resolution or a threat of another government shutdown.

Further, August will prove to be an important month for federal employees curious about a pay raise in 2027. President Trump did not include a pay raise for federal employees in 2027 as part of his budget request, and Congress has not included any language supporting a raise in current versions of the Financial Services funding bill, typically where a pay raise or pay freeze would be included. The House Appropriations Committee rejected an amendment to include a 3.6 percent pay raise offered by Rep. Steny Hoyer (D-MD) by a party-line vote, with 28 Democrats supporting and 32 Republicans in opposition. Subcommittee Chairman David Joyce (R-OH) referenced President Trump’s ability to use an alternative pay plan, calling the committee’s rejection of a pay raise, “the reality of politics, and exactly why we have elections every four years.”

Under the Federal Employees Pay Comparability Act (FEPCA), President Trump is required to submit an "alternative pay plan" letter to Congress by August 31 if he intends to override automatic, formulaic pay raises (which default to base and locality adjustments) for 2027. The August alternative pay plan acts as the definitive mechanism used to set federal civilian salaries, often averting much larger default increases dictated by the FEPCA formula. Last year, President Trump issued a 1 percent raise for 2026 in his alternate pay plan.