Congressional leaders are optimistic about ongoing bipartisan discussions to prevent a lapse in funding before the current continuing resolution (CR) expires on December 20. Senate Majority Leader Chuck Schumer (D-NY) suggested negotiations were “on the right track.” However, he cautioned a need to “keep divisive and unnecessary provisions out of any government funding extension, or else it will get harder to pass a CR in time.”

The length of the next CR remains to be determined. Many in Congress are pushing for an extension into March to allow the 119th Congress and the incoming Trump Administration to work directly on appropriations going forward. Legislators will need to be mindful to finalize full-year appropriations by the end of April 2025. Under the Fiscal Responsibility Act, if they pass into May 2025 under a CR, both defense and non-defense funding levels will be reduced by 1 percent.

Legislators have yet to agree on topline numbers – the overall spending level for Fiscal Year 2025 – so they have a lot of work to accomplish to allocate funding across the government. They will be busy in the new year, as the Senate will be confirming President-elect Trump’s cabinet nominees and navigating major budget reconciliation packages in an ambitious agenda. House Majority Leader Steve Scalise (R-LA) noted, “We’ve got to do a lot of things at the same time . . . we’re going to be walking and chewing gum.”

FMA continues to urge Congress to provide full-year appropriations as soon as possible to give managers budget certainty and an opportunity to salvage planning for the remainder of Fiscal Year 2025.

As we have noted previously, one thing not to expect, according to House Speaker Mike Johnson (R-LA), is another omnibus appropriations bill. “I want to assure everyone . . . we are not going to return to a Christmas omnibus spending tradition, and that’s significant,” Johnson said.