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House and Senate lawmakers unveiled a new funding package on Sunday night totaling roughly $80 billion in federal spending, but questions still loom about averting another government shutdown at the end of this month.
The package combines two of Congress’ 12 annual appropriations bills in what’s called a “minibus.” It covers funding for the State Department and related national security, as well as federal financial services and general government operations.
Notably excluded from the package, however, is funding for the Department of Homeland Security (DHS) — which had been expected to be part of the legislation earlier this month.
It comes as Democrats threaten to hold up DHS funding in the wake of an incident in Minneapolis where an ICE agent shot a U.S. citizen in her car. DHS Secretary Kristi Noem and other GOP officials have accused the woman of being at fault and of hitting the agent with her vehicle, while Democrats are charging ICE with a reckless and unprovoked use of force.
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While a DHS funding bill only needs a simple majority to pass the House, any spending legislation needs at least 60 votes in the Senate — meaning Democratic support is critical for passage.
The package released totals just over $76 billion in federal funds and is expected to get a House vote sometime this week.
The State Department and national security bill includes $850 million for an “America First Opportunity Fund,” aimed at giving the Secretary of State funding to respond to potential unforeseen circumstances.
Both Republicans and Democrats touted different victories in the legislation, with a summary by House Appropriations Committee Republicans stating that the bill supports “President Trump’s America First foreign policy by eliminating wasteful spending on DEI or woke programming, climate change mandates, and divisive gender ideologies.”
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Democrats said the bill “supports women globally” by “protecting funding for bilateral family planning and the United Nations Population Fund (UNFPA)” and pointed to $6.8 billion for a new account “that supports the activities previously funded under Development Assistance.”
The bill also provides millions in security assistance for Israel and Taiwan, among other global partners across the world.
The latter bill provides just over $13 billion for the U.S. Treasury for the remainder of fiscal year (FY) 2026, while also including a provision that stops the IRS “from targeting individuals or groups for exercising their First Amendment rights or ideological beliefs,” according to Republicans.
It also provides $872 million for the Executive Office of the President and $9.69 billion in discretionary funding for the Federal Judiciary, respectively.
“With this package, we are advancing President Trump’s vision of a golden age defined by security, responsibility, and growth. Our financial system will be protected, small businesses and entrepreneurs supported, and consumer freedom safeguarded,” House Appropriations Committee Chairman Tom Cole, R-Okla., said in a statement.
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“We shield our nation across every front – strengthening cyber defenses and dismantling the financial and criminal networks that enable terrorism, drug trafficking, and bad actors. Guided by peace through strength, we realign our diplomacy and national posture to deter threats before they reach our shores.”
House Appropriations Committee ranking member Rep. Rosa DeLauro, D-Conn., said the bill “continues Democrats’ rejection of extreme cuts proposed by the Trump White House and Republicans in Congress.”
A source familiar with discussions told Fox News Digital that negotiators are aiming to include the DHS funding bill in a separate minibus that also covers defense spending, the Department of Labor, and the Department of Transportation, among other agencies.
Current federal funding levels expire after Jan. 30. Any potential shutdown would only be a partial one at this point, given Congress is on its way to passing at least half of its dozen spending bills by then.
Senate Appropriations Committee member Sen. Chris Murphy, D-Conn., did not rule out a shutdown over the DHS funding standoff in comments to NBC News’ “Meet The Press” on Sunday.
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“[Republicans] control the House, the Senate and the presidency. If they don’t want to work with Democrats and shut down the government, that’s up to them,” Murphy said.
But Speaker Mike Johnson, R-La., told Fox News on Friday that he does not believe there will be a shutdown but criticized Democrats’ threats to DHS funds.
“I am concerned about that, and we should not be limiting funding for homeland security at a dangerous time. We need public officials to allow law enforcement to do their jobs,” Johnson said.
Asked whether leaders could prevent a shutdown, he said, “I think we will.”
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