Both chambers of Congress are now in their annual summer recess. They will reconvene on Tuesday, September 2.

Last Friday, the Senate passed its first package of fiscal 2026 spending bills. The "minibus" bill combines the Military Construction-VA (H.R. 3944), Agriculture (S 2256), and Commerce-Justice-Science (S 2354) spending bills.

While this is a significant step forward in the annual budget process, time is running out for the current fiscal year. Funding is set to expire on September 30, as the government is currently operating under a Continuing Resolution (CR), a temporary measure that extends existing funding levels without making any changes.

To avoid a shutdown, both the House and Senate must pass all twelve appropriations bills and reconcile any differences before the new fiscal year begins on October 1. However, with Congress in recess for the month of August, the likelihood of completing this work in time is extremely low.

As a result, another Continuing Resolution is expected. The duration and terms of that CR remain uncertain, but it is unlikely to fund the government through the full year. Instead, we anticipate a short-term extension to buy lawmakers more time.

Additionally last week, NEFI attended the Senate Appropriations Committee's markup of the Labor-Health and Human Services funding bill. During the hearing, lawmakers outlined their proposed funding levels for the Low-Income Heating Assistance Program (LIHEAP). See our lead story for details.

NEFI will continue monitoring the process closely and provide updates as negotiations unfold.