Executive Summary

• Fiscal year (FY) 2025 ends on September 30 and the continuing resolution (CR) that has funded the federal government since March 15 will expire.
• When Congress returns from its August recess on September 2, it will have just 28 days to complete work on the 12 full-year appropriations bills for FY 2026 or enact another CR to keep the federal government funded at current levels; otherwise, a government shutdown will occur.
• Congress has not yet enacted any of the 12 full-year appropriations bills to fund the government for FY 2026 that begins on October 1, though the appropriations process has been underway in both the House and Senate.

Introduction

Fiscal year (FY) 2025 ends on September 30 and the continuing resolution (CR) that has funded the federal government since March 15 will expire.

Congress will have just 28 days to avoid a lapse in government funding when it returns from its August recess on September 2. During that time, policymakers will need to complete work on the 12 full-year appropriations bills for FY 2026 or enact another CR to keep the government funded at current levels. Otherwise, a government shutdown will occur.

Congress has not yet enacted any of the 12 full-year appropriations bills to fund the government for the new fiscal year that begins on October 1, though the appropriations process has been underway in both the House and Senate.

The House Appropriations Committee adopted 302(b) subcommittee allocations that allocate nearly $1.6 trillion of total base discretionary budget authority (BA) for FY 2026, including $892.5 billion for defense discretionary programs and $705.6 billion for nondefense discretionary programs. The Senate Appropriations Committee has not adopted 302(b)s and the subcommittees are unveiling the topline amount for their respective appropriations bill as the bills are introduced.

This insight explains where the FY 2026 appropriations process stands in both the House and Senate.

FY 2026 Appropriations in the House

On July 17, the House Appropriations Committee approved updated FY 2026 302(b) subcommittee allocations (the Committee approved initial 302(b)s for four of the 12 subcommittees on June 11). The 302(b) allocations specify the amount that each of the 12 subcommittees must draft their respective appropriations bill for the programs under their jurisdictions. The House 302(b)s allocate nearly $1.6 trillion of total base discretionary budget authority (BA) for FY 2026, including $892.5 billion for defense discretionary programs and $705.6 billion for nondefense discretionary programs.

The CR that has funded the federal government since March 15 included $892.5 billion of base defense BA and $708.0 billion of base nondefense BA, for a total of just over $1.6 trillion of total base BA. The House FY 2026 302(b)s leave base defense BA frozen at $892.5 billion but cut nondefense funding by $2.4 billion (0.3 percent). As a result, total base BA is reduced by $2.4 billion (0.1 percent).

So far, 11 of the 12 appropriations bills have advanced out of their respective subcommittees, nine of the 12 bills have cleared the House Appropriations Committee, and two of the 12 bills have been passed by the full House. There has not been any progress on the Labor, Health and Human Services, and Education appropriations bill.

The 11 bills that have been drafted thus far adhere to their 302(b) allocation, except for the Financial Services and General Government bill, which is $143 million above its 302(b). In total, the 11 bills allocate more than $1.4 trillion of total base BA for FY 2026. This is $11.4 billion (0.8 percent) above the $1.4 trillion of base BA enacted for the same set of bills in FY 2025.

Status of FY 2026 Appropriations in the House (As of 8/26/25)

Subcommittee	FY 2025 Enacted	FY 2026 302(b)	FY 2026 Drafted	FY 2026 Status
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies	$26.6 billion	$25.5 billion	$25.5 billion	Approved by House Appropriations Committee on 6/23/25
Commerce, Justice, Science, and Related Agencies	$67.8 billion	$76.8 billion	$76.8 billion	Approved by subcommittee on 7/15/25
Defense	$831.5 billion	$831.5 billion	$831.5 billion	Passed by House on 7/28/25
Energy and Water Development and Related Agencies	$58.1 billion	$57.3 billion	$57.3 billion	Approved by House Appropriations Committee on 7/17/25
Financial Services and General Government	$15.9 billion	$23.2 billion	$23.3 billion	Approved by subcommittee on 7/21/25
Homeland Security	$65.0 billion	$66.4 billion	$66.4 billion	Approved by House Appropriations Committee on 6/24/25
Interior, Environment, and Related Agencies	$40.9 billion	$38.0 billion	$38.0 billion	Approved by House Appropriations Committee on 7/22/25
Labor, Health and Human Services, Education, and Related Agencies	$198.2 billion	$184.5 billion	N/A	No progress as of 8/26/25
Legislative Branch	$6.7 billion	$6.7 billion	$6.7 billion	Approved by House Appropriations Committee on 6/26/25
Military Construction, Veterans Affairs, and Related Agencies	$146.5 billion	$152.1 billion	$152.1 billion	Passed by House on 6/25/25
National Security, Department of State, and Related Programs	$56.8 billion	$46.2 billion	$46.2 billion	Approved by House Appropriations Committee on 7/23/25
Transportation, Housing and Urban Development, and Related Agencies	$86.4 billion	$89.9 billion	$89.9 billion	Approved by House Appropriations Committee on 7/17/25
Total	$1,600.5 billion	$1,598.1 billion	$1,413.8 billion*	N/A
Total Defense	$892.5 billion	$892.5 billion	N/A	N/A
Total Nondefense	$708.0 billion	$705.6 billion	N/A	N/A

Sources: Congressional Budget Office and House Appropriations Committee. *Only includes 11 of the 12 full-year appropriations bills. As of 8/25/25, the House has not made any progress on the Labor, Health, and Human Services, and Education appropriations bill.

FY 2026 Appropriations in the Senate

Unlike its counterpart in the House, the Senate Appropriations Committee has not adopted 302(b) subcommittee allocations. The Senate subcommittees have been unveiling the topline amount for their respective appropriations bills as the bills are introduced.

So far, eight of the 12 appropriations bills have advanced out of their respective subcommittees, eight of the 12 bills have cleared the Senate Appropriations Committee, and three of the 12 bills have been passed by the full Senate. There has not been any progress on the Energy and Water Development, Financial Services and General Government, Homeland Security, and National Security and Department of State appropriations bills.

The eight bills the Senate has worked on allocate nearly $1.5 trillion of total base discretionary BA for FY 2026. This is $50.5 billion (3.6 percent) above the $1.4 trillion of base BA enacted for the same set of bills in FY 2025.

Status of FY 2026 Appropriations in the Senate (As of 8/26/25)

Subcommittee	FY 2025 Enacted	FY 2026 302(b)	FY 2026 Drafted	Status
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies	$26.6 billion	N/A	$27.1 billion	Passed by Senate on 8/1/25
Commerce, Justice, Science, and Related Agencies	$67.8 billion	N/A	$79.7 billion	Approved by Senate Appropriations Committee on 7/17/25
Defense	$831.5 billion	N/A	$851.9 billion	Approved by Senate Appropriations Committee on 7/31/25
Energy and Water Development and Related Agencies	$58.1 billion	N/A	N/A	No progress as of 8/26/25
Financial Services and General Government	$15.9 billion	N/A	N/A	No progress as of 8/26/25
Homeland Security	$65.0 billion	N/A	N/A	No progress as of 8/26/25
Interior, Environment, and Related Agencies	$40.9 billion	N/A	$38.6 billion	Approved by Senate Appropriations Committee on 7/24/25
Labor, Health and Human Services, Education, and Related Agencies	$198.2 billion	N/A	$197.0 billion	Approved by Senate Appropriations Committee on 7/31/25
Legislative Branch	$6.7 billion	N/A	$7.1 billion	Passed Senate on 8/1/25
Military Construction, Veterans Affairs, and Related Agencies	$146.6 billion	N/A	$153.5 billion	Passed Senate on 8/1/25
National Security, Department of State, and Related Programs	$56.8 billion	N/A	N/A	No progress as of 8/26/25
Transportation, Housing and Urban Development, and Related Agencies	$86.4 billion	N/A	$100.2 billion	Approved by Senate Appropriations Committee on 7/24/25
Total	$1,600.5 billion	N/A	$1,455.1 billion*	N/A
Total Defense	$892.5 billion	N/A	N/A	N/A
Total Nondefense	$708.0 billion	N/A	N/A	N/A

Sources: Congressional Budget Office and Senate Appropriations Committee. *Only includes eight of the 12 full-year appropriations bills. As of 8/25/25, the Senate has not made any progress on the Energy and Water Development, Financial Services and General Government, Homeland Security, and National Security and Department of State appropriations bills.

How Do the House and Senate Differ?

The House has made progress on 11 of the 12 appropriations bills, which allocate more than $1.4 trillion of FY 2026 base BA. The Senate has made progress on eight of the 12 bills, which allocate just over $1.3 trillion of base BA.

When looking at the overlap between the two chambers, the House and Senate have both made progress on seven of the same bills. The House versions of these seven bills allocate more than $1.2 trillion of total base BA. The Senate versions allocate nearly $1.3 trillion, which is $37.6 billion (3.1 percent) above their House counterparts.

Comparing FY 2026 Appropriations in the House and Senate (As of 8/26/25)

Subcommittee	FY 2026 House Drafted	FY 2026 Senate Drafted	$ Difference	% Difference
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies	$25.5 billion	$27.1 billion	+$1.6 billion	+6.2%
Commerce, Justice, Science, and Related Agencies	$76.8 billion	$79.7 billion	+$2.9 billion	+3.8%
Defense	$831.5 billion	$851.9 billion	+$20.4 billion	+2.5%
Energy and Water Development and Related Agencies	$57.3 billion	N/A	N/A	N/A
Financial Services and General Government	$23.3 billion	N/A	N/A	N/A
Homeland Security	$66.4 billion	N/A	N/A	N/A
Interior, Environment, and Related Agencies	$38.0 billion	$38.6 billion	+$0.6 billion	+1.7%
Labor, Health and Human Services, Education, and Related Agencies	N/A	$197.0 billion	N/A	N/A
Legislative Branch	$6.7 billion	$7.1 billion	+$0.4 billion	+6.0%
Military Construction, Veterans Affairs, and Related Agencies	$152.1 billion	$153.5 billion	+$1.4 billion	+0.9%
National Security, Department of State, and Related Programs	$46.2 billion	N/A	N/A	N/A
Transportation, Housing and Urban Development, and Related Agencies	$89.9 billion	$100.2 billion	$10.3 billion	+11.5%
Total Drafted as of 8/26/25	$1,413.8 billion	$1,455.1 billion	N/A	N/A
Total Drafted by both House and Senate as of 8/26/25	$1,220.5 billion	$1,258.1 billion	+$37.6 billion	+3.1%

Sources: Congressional Budget Office, House Appropriations Committee, and Senate Appropriations Committee.

A Continuing Resolution Will Likely Still Be Needed

The differences between the House and Senate on FY 2026 appropriations point to a battle over government funding when Congress returns from its August recess on September 2. Work on government funding is unlikely to be completed by the time the current fiscal year ends on September 30, and thus a CR will likely be needed to fund the government at current levels for a designated amount of time and to avoid a government shutdown.