Congress has finalized and approved the remaining Fiscal Year 2026 appropriations package, securing government funding through the end of the fiscal year and narrowly preventing a partial federal shutdown that was scheduled to begin at midnight. The agreement followed weeks of tense negotiations and late-stage disagreements that nearly pushed the government into a funding lapse.
The comprehensive legislation funds the Department of Homeland Security, the Defense Department, and several major domestic agencies that had been temporarily operating under a stopgap bill. Lawmakers had already advanced the other federal funding measures in December, making this the concluding component of the annual budget process.
Under the plan, previously proposed cuts to the Department of Education will not move forward, preserving current funding levels. The package also delivers a targeted 3.8% pay increase for air traffic controllers employed by the federal government – one of several workforce-focused provisions inserted into the final bill. Dozens of last-minute policy add-ons, widely referred to as “airdrops,” were attached to the measure, though many details were not immediately disclosed as the legislative text exceeded 3,000 pages.
The House approved the approximately $1.6 trillion bill on January 20, and the Senate quickly followed, sending the final measure to the President for her signature before the deadline.
Immigration and border enforcement remained one of the most contentious components throughout negotiations. The Homeland Security portion of the bill directs U.S. Immigration and Customs Enforcement to maintain no fewer than 34,000 detention beds. Additional funding includes $650 million for the Federal Emergency Management Agency’s disaster relief fund and $100 million for a newly created grant program assisting communities experiencing high levels of migrant arrivals.
The legislation also authorizes the future hiring of 22,000 additional Border Patrol agents. While authorization language has been included, full staffing funds for those positions will be phased in and are not entirely allocated in the current spending cycle.
The final text of the bill was released to lawmakers just before 3:00 a.m. on January 20, leaving members of Congress only a brief window to assess the expansive document prior to floor votes. Disputes surrounding homeland security funding, particularly detention capacity and immigration-related provisions, were the primary obstacles that extended negotiations until hours before the deadline.
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