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The next shutdown threat is around the corner

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The longest shutdown in U.S. history is ending. Yet Congress’ most onerous government funding work remains unfinished — setting up a potential repeat early next year.

The bipartisan deal to end the funding lapse includes a long-term agreement on just three of the dozen bills lawmakers need to finish each year to keep cash flowing to federal programs. And those three measures are some of the easiest to rally around — including money for veterans programs, food aid, assistance for farmers and the operations of Congress itself.

Together, they represent only about 10 percent of the roughly $1.8 trillion Congress doles out each year to federal agencies. Under the deal, everything else is funded on a temporary basis through Jan. 30 at levels first set by Congress in March 2024, when Joe Biden was president.

That leaves behind major open decisions about the vast majority of discretionary dollars — including for the military and public health programs — along with the stickiest policy issues. It doesn’t help that House and Senate leaders still haven’t agreed on an overall total for fiscal 2026 spending, amid GOP divisions over how deeply to cut.

House Majority Leader Steve Scalise acknowledged this month that the hardest part of the funding negotiations is ahead after President Donald Trump signs the current deal to end the shutdown.

“We’ve got to just find a resolution to get the lights back on,” Scalise said. “But the real negotiation is going to be: Can we get an agreement on how to properly fund the government with individual appropriations bills, packages of appropriations bills?”

If lawmakers don’t figure it all out by the new January deadline, Congress risks another partial shutdown or running most of the federal government on what are essentially two-year-old budgets. Some Democrats are already hinting they are willing to shut down the government again without a deal on Affordable Care Act insurance subsidies that expire at the end of this year.

Compounding the challenge are fears that partisan strife during the six-week shutdown will only complicate the already-grueling task of striking a cross-party compromise.

“If we’re going to function again, we’ve got to be able to trust each other,” senior appropriator Sen. Jeanne Shaheen (D-N.H.) told reporters this week, after helping broker the deal to end the shutdown.

The three-bill deal appears to have done little to repair the breach. One of Congress’ top four appropriators, Rep. Rosa DeLauro (D-Conn.), objected to how final negotiations played out over the weekend to close out the funding package.

“The entire House was marginalized in this process,” she said Tuesday night during a Rules Committee meeting.

DeLauro accused Senate Republicans of “abruptly” stopping talks in the middle of negotiations, making the bills public before she signed off and secretly adding controversial language without consulting House lawmakers.

In the Senate, leaders have committed to quickly advancing more funding measures. Majority Leader John Thune said senators would be “off to the races” on a second package of spending measures when the chamber gavels back in on Tuesday.

Up to five bills are under consideration for inclusion in that package, covering funding for the military and the departments of Education, Commerce, Labor, Health and Human Services, Justice, Transportation, Interior and Housing and Urban Development.

Getting that done will be hard enough. All 100 senators would have to consent to quickly assemble the bills on the floor, likely followed by weeks of debate before a vote on passage. Then top Senate appropriators would need to strike a compromise with their House counterparts.

But the remaining spending bills will be even tougher. Four are so divisive that Senate appropriators didn’t even approve them in committee this summer. Lawmakers in both parties agree it is likely that agencies covered under that slate — among them the departments of Energy, Homeland Security, State and Treasury, including the IRS — will eventually be funded through a stopgap that spans through next September.

Democrats warn that any partisan demands from Trump or hard-liners in the House could deadlock the effort to reach agreements on the nine bills left.

“If they want to add poison pills, obviously the whole thing will fall apart,” Sen. Chris Van Hollen (D-Md.), a senior appropriator, said in a brief interview.

But Democrats are also motivated to strike bipartisan deals in light of Trump and White House budget director Russ Vought’s moves this year to shift, freeze and cancel billions of dollars Congress already approved.

Senators have been careful to be more explicit in the new trio of funding bills about how the Trump administration must spend the money.

“Obviously, those are not the bills I would have written,” the Senate’s top Democratic appropriator, Washington Sen. Patty Murray, said in a floor speech this week. But those bills, she added, are “immeasurably better than Trump and Vought holding the pen.”

“We have a lot of work ahead, and I know we can get there — passing full-year funding bills to ensure Congress, not Trump or Russ Vought, decides how taxpayer dollars are spent,” she continued.

A couple of the remaining bills, however, are subject to much more profound disputes. An intraparty disagreement over funding levels between Senate Appropriations Chair Susan Collins (R-Maine) and Sen. John Kennedy (R-La.), for instance, has left the energy bill in limbo.

“I know that is a new experience for everybody on the committee,” Kennedy said this week. “But I’m not backing down.”

And then there’s the DHS measure, which hasn’t been unveiled, let alone advanced through committee amid a deep partisan dispute over curbing Trump’s immigration agenda.

Connecticut Sen. Chris Murphy, the top Democrat on the panel that funds DHS, said he wants “real constraints” to prevent what he calls the Trump administration’s “clearly illegal” transfers of funding to support border enforcement and mass deportations.

“It’s going to be really hard to get a bipartisan long-term budget,” Murphy said, pointing to $600 million the administration is now using for detaining immigrants despite Congress explicitly approving it for “non-detention” efforts.

Sen. Katie Britt of Alabama, who has clashed with Murphy as his GOP counterpart on the panel, acknowledged appropriators have “a lot of hard work in front of us” when asked this week about the challenge of advancing the next tranche of spending bills.

“I don’t think anyone is naive,” she said.

Meredith Lee Hill contributed to this report.

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Congress

House Dem election leader’s message to states: Count faster

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House Democrats’ top election leader has a message for states ahead of the midterms: count faster.

“We are, I think, nicely trying to encourage people to do their balloting as quickly as possible, and that means hiring additional staff so that it doesn’t call into question results,” Rep. Joe Morelle of New York, the top Democrat on the House Administration Committee, said in a Thursday interview with Blue Light News.

The advice is just one part of Morelle’s efforts to secure the midterm elections. He said Democrats have wargamed over 150 scenarios of how the Trump administration could attempt to interfere or complicate the November elections and its certification. He is encouraging states to have a “degree of urgency” when counting ballots to stave off Republican-led conspiracy theories about the reasons for delays.

Morelle said he is leaning on states to staff up on election officials to facilitate speedy ballot counting while emphasizing the process should still be “done properly,” “fairly” and that “we don’t want people with cast ballots not to have their ballots counted.” He is going to Los Angeles next week to deliver that message and meet with election security experts and election administrators — though he did not specify whom he is meeting with or where.

“We are trying to gently encourage people to staff up,” he said. Morelle added that if Democrats take the House majority, they’d “push for more resources for local and state administrators so they can hire additional capacity.”

Morelle has other big plans in the majority, including cracking down on dark money in politics, protecting voting rights and most notably, working on a bipartisan voter identification bill.

Asked whether he could accept some form of voter identification as part of a larger bipartisan elections package, Morelle said, “I’m personally not opposed to some form of voter ID,” adding that he has opposed multiple Republican-led proposals to tighten up identification requirements.

“I don’t know where my colleagues on the Democrat side will be, but I think voters think, ‘Okay, you show your ID for just tons of things. Is it really that much of a burden?’” he said. “And if it is, we’ll get state issued IDs or federally issued IDs to people who can’t afford it. So I do think that there’s hope for a bipartisan way forward, and I’ll be anxious to work with colleagues to do it.”

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Capitol agenda: What Johnson’s early exit could leave behind

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Speaker Mike Johnson on Thursday curtailed the chamber’s pre-election calendar, putting a number of priorities at risk of being delayed until the lame-duck period or axed altogether.

Johnson cited pre-midterm political pressures and a lack of action in the Senate — which is due to return Sept. 14 — as reasons for canceling the House’s final two weeks of session before November.

But that means House lawmakers have just one more work week in Washington before the elections, and a short list of priorities some members wanted to see action on are now in serious doubt:

— DATA CENTERS: One key item that could slip off the pre-midterm agenda is a measure to rein in data centers. Several vulnerable Republicans, like Rep. Rob Bresnahan, say they want to respond to voter backlash against the AI infrastructure.

Rep. Brett Guthrie’s so-called Ratepayer Protection Act was the most promising bill poised for action this month given its bipartisan approval by Energy and Commerce. He’s been pushing Johnson for a floor vote for the bill meant to curb data centers’ grid impact — but the speaker has made no commitments as the broader data center issue has divided Republicans.

— RUSSIA SANCTIONS: Legislation aimed at sanctioning Russia’s trading partners is also at risk of languishing in the House after supporters earlier this week had hoped for a vote this month. Johnson on Thursday told reporters leaders were still trying to build bipartisan consensus on the measure.

Foreign Affairs ranking member Gregory Meeks,
“apparently is vehemently opposed to it, and I think the Democrat leadership is as well,” Johnson said. “This should be a bipartisan effort.”

— EPSTEIN OVERSIGHT: House Oversight members, including Chair James Comer, wanted to hold a meeting as early as this month for Attorney General Todd Blanche to be interviewed as part of the panel’s Jeffrey Epstein investigation. But yesterday Comer sought to temper expectations given the shortened calendar.

An effort by Reps. Thomas Massie and Ro Khanna to force a second House vote requiring Blanche to provide more Epstein documents could also fall by the wayside. Massie had earlier this week been bullish on getting enough signatures to force the vote before the midterms, saying he thought the transparency effort would “help anybody who’s in a purple state.”

Anything that gets punted to November joins a lengthy list of other major priorities lawmakers have lined up to deal with when they return, including the annual defense policy bill, government funding legislation, a surface transportation package, a farm bill, a renewal of government spy powers and more.

The diminished likelihood of some of these members’ priorities reaching the floor before then is a likely welcomed fate to some Republicans, who hoped to avoid what could be politically tricky votes on data centers and further scrutiny of administration officials and the Epstein files.

Democrats, meanwhile, have cast the curtailed schedule as proof of the GOP’s dysfunction.

“No farm bill. No AI regulations. No affordability agenda. No transportation bill. No water resources bill. No college sports bill. No end to this war,” Sen. Brian Schatz posted about Johnson’s schedule change. “See you right before the holidays! Great job!”

What else we’re watching: 

— BATTLEGROUND REPUBLICANS WARY OF TRUMP MIDTERM VISITS: Republicans facing tough elections are wary of tying themselves too closely to President Donald Trump despite his eagerness to get on the campaign trail. Trump’s promise to be heavily involved in the final days of the midterm elections has put many Republicans in an uncomfortable spot: Stay too close to Trump and they could be dragged down by the president’s low approval rating. But run too far away and risk alienating MAGA or Trump, whose super PAC is sitting on more than $400 million they desperately need deployed to help them win key races.

 

— DEM ELECTION CHIEF WANTS FASTER VOTE TALLIES: Count faster. That’s the message from Rep. Joe Morelle, House Democrats’ top election leader, to states ahead of the midterms. Morelle said in an interview with Blue Light News he’s been leaning on states to staff up on election officials to facilitate speedy ballot counting, while emphasizing the process should still be “done properly.” The advice is part of his efforts to secure the midterm elections and stave off Republican-led conspiracy theories about the reasons for delays. Morelle also said Democrats have wargamed over 150 scenarios of how the Trump administration could attempt to interfere or complicate the November elections and its certification.

Andrew Howard, Meredith Lee Hill, Erin Doherty, and Riley Rogerson contributed to this report.

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Casten tells Waters he won’t challenge her for Financial Services gavel — but won’t rule it out publicly

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Rep. Sean Casten privately told Rep. Maxine Waters this week that he would not challenge her for the House Financial Services gavel next year, according to two people with knowledge of the exchange, batting down speculation that he will run against her if Democrats take back the House.

The revelation comes after Punchbowl News reported that Casten is weighing a bid to challenge Waters for the top spot on the Financial Services panel. Waters, 88, heard rumors this week about Casten considering a challenge and asked him Thursday afternoon if he planned to run against her, one of the people said. He indicated he would not, the person said.

Yet, Casten, 54, is not publicly denying that he is considering a bid. The Illinois Democrat said in a statement Thursday that he has “great respect for Ranking Member Waters, who has made the Financial Services Committee my home in Congress.”

“My focus is on working to ensure we take back the majority,” he said.

Casten, who currently serves as the vice ranking member of House Financial Services, has privately expressed interest in succeeding Waters as Financial Services chair, according to two people with knowledge of his thinking. But Blue Light News cannot independently confirm that he is currently considering running against Waters.

A spokesperson for Waters did not immediately respond to a request for comment about the matter.

Casten has previously said he backs Waters. In an interview on Nov. 21, 2025, he told Blue Light News: “I think she does a great job and she’s got my support as long as she wants to stay in that seat.”

“She brings the fire,” he said at the time. “I think in this moment you want people who are fighters.”

Waters would be the oldest House Financial Services chair ever — a concern for some Democrats who want fresh blood in the seat. Asked about her age last November, Casten said he didn’t have any concerns about Waters’ abilities.

“I am a firm believer that when people are visibly past their time, it’s time to sort of have some hard conversations,” he said. “That’s a mental issue, not an age issue. And I don’t have any concern that she’s mentally up for the job.”

House Minority Leader Hakeem Jeffries, who is in line to become speaker if Democrats retake the House, has also signaled support for Waters. In a statement to Blue Light News in March, Jeffries said that Waters “has led the Financial Services Committee with vision, intellect, passion and skill.”

“It’s my expectation that such iconic leadership will continue in the 120th Congress,” he said at the time.

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