With the House and Senate far apart on a fiscal year 2026 appropriations deal, Republican leaders are seeking to pass a short-term continuing resolution to fund the government and keep it open past the fast-approaching Sept. 30 deadline. But Democrats, many of whom are irked by the Trump Administration’s decision to unilaterally cancel or rescind funding in FY25, are pushing any CR to include extensions of Affordable Care Act premium tax credits. It is unclear if Republicans, Democrats, and the White House will agree on a short-term CR by the deadline. 

Though Republicans have majorities in the House and Senate, appropriations bills are subject to the 60-vote threshold in the Senate, which means Senate Republicans need at least seven Democrats to vote for passage to avoid a shutdown. Republicans also have a very slim majority in the House where they can now only lose up to two Republicans on any vote. 

A short-term CR is necessary due to significant disagreements on funding between the House and Senate on overall appropriations for FY26. House appropriations bills, including the Labor, Health and Human Services and Education appropriations bill that recently passed out of the House Appropriations Committee, include significant cuts that track closely to the Trump Administration’s FY26 budget request. The Senate, on the other hand, has kept funding flat in its FY26 Labor, Health and Human Services, and Education appropriations bill, ignoring the Administration’s proposed cuts to research funding and assistance for low-income students. Notably, the Senate bill was approved out of committee on a bipartisan vote of 26-3 while the House bill passed out of committee on a partisan 35-28 vote. 

If passed, a short-term CR would provide additional time for lawmakers to agree on funding levels for the full fiscal year, though achieving a successful compromise is far from certain. If lawmakers are unable to pass a short-term CR, the resulting federal government shutdown would certainly impact the ability of colleges, universities, and schools to work with key agencies and unlock important funding. The extent of the impact would depend on the length of a shutdown and what the Administration deems as essential government services. 

Get the latest on the status of funding talks and other key legislative developments by registering for the CASE Washington Update webinar taking place Friday, Sept. 19 at 1 p.m. ET. You can also join the CASE Advocacy Network to receive weekly updates on all things happening on Capitol Hill.