Congressional Appropriations: Current State of (Government) Affairs

By Lauren Kahre

Before the August recess, the House Appropriations Committee advanced its Fiscal Year 2027 (FY 27) Labor, Health and Human Services (HHS), Education, and Related Agencies spending bill, which includes a total cut of $19 billion across all three departments. Unlike the Senate, where appropriations bills require 60 votes to pass and therefore demand bipartisan cooperation, the House operates under a simple majority rule. This allows the Republican-controlled House to write and advance appropriations bills without input from the Democratic minority. The Republican House proposal cuts HHS by $4.5 billion (4 percent below the prior year), with a $1 billion reduction to the Centers for Disease Control and Prevention (CDC) that disproportionately targets domestic human immunodeficiency virus (HIV) and acquired immunodeficiency syndrome (AIDS) prevention and research. All members can submit funding requests, but only the majority determines which priorities receive money and which face cuts.

In contrast, the Senate has not released regular appropriations bills. Senate leadership from both parties could not agree on overall funding levels, creating a breakdown in the usual bipartisan process and adding uncertainty to the final outcome. Before departing for August recess, both chambers passed separate continuing resolutions to avert an October 1 shutdown. The Senate Continuing Resolution (CR) (through December 11) includes language delaying the Office of Management and Budget (OMB) proposed rule on grant management and preventing funds transfers to Border Patrol. The House CR (through December 4) contains neither provision, leaving the OMB rule fight to the appropriations process itself.

As Congress returns to session, the House reconvenes on August 31 and the Senate on September 14. Heading into the fall, the landscape remains uncertain. The House may accept the Senate CR as-is under suspension of the rules, preserving OMB delay language, but only for the CR duration. House Appropriations Committee hearings are expected in September, though dates have not been formally announced. Intel from hill staff has signaled that final funding bills will pass over a holiday recess (think Thanksgiving), likely extending into late fall or early winter. Ultimately, both parties are waiting for the outcome of the November midterms before taking next steps on FY 27 bills.