Fiscal Year 2026 Budget Update Banner

On Friday, January 30, the Federal Government entered a partial shutdown after funding for several departments lapsed at midnight when the second Fiscal 2026 Continuing Resolution expired. The good news is that the Senate finally reached a bipartisan agreement on a package of five Fiscal 2026 appropriations bills that would fund the majority of the Federal Government through September 30, 2026. The five spending bills include: Defense Appropriations Bill (Department of War), Labor/HHS/Education, Transportation/HUD, Financial Services and General Government, and State/National Security. The bill funding the Department of Homeland Security was stripped out of this five-bill minibus and will be funded through a two-week continuing resolution. This two-week extension allows additional time for negotiations related to immigration enforcement.

The bipartisan agreement covering the five referenced spending bills restores funding cuts sought by the Trump Administration in a number of major budget accounts, including science (NASA, NSF, NIST, NIH, EPA, and NOAA), housing assistance, Ukraine and Baltic security, defense critical infrastructure, and foreign assistance.

In terms of next steps, the five-bill minibus will be taken up by the House Rules Committee at 4:00 PM on Monday, February 2. The earliest the five-bill minibus will be taken up by the full House of Representatives will be on Tuesday, February 3. This means the best case for resolution of the current government shutdown will be in the Tuesday/Wednesday timeframe. In the event House floor consideration of the minibus gets bogged down by a drawn-out floor debate, the government shutdown could last until the Thursday/Friday timeframe.

Fiscal 2026 Appropriations Recap

Agencies which have their full Fiscal 2026 appropriations through September 30, 2026:

President Trump has signed the Fiscal 2026 appropriations bills funding the following agencies into law:

  1. Veterans Affairs, Agriculture, Energy, Interior, Commerce, and Justice
  2. Independent agencies such as NASA, National Science Foundation, the Food and Drug Administration, and the Environmental Protection Agency
  3. All legislative branch agencies

Agencies affected by the partial shutdown:

1. Departments including State, Treasury, Department of War, Transportation, Housing and Urban Development, Health and Human Services, Labor, Education, and DHS (except to the extent covered by the two-week CR extension) are operating under a funding lapse and experiencing partial shutdown conditions.

Access the latest FY26 budget insights from Robert G. Efrus, CEO of Efrus Federal Advisors. This collection includes the FY26 minibus, comprehensive appropriations resources (Appropriations Bills and Joint Explanatory Statements), the DHS stoppage bill, remaining funding available through the OBBBA, and the most recent NDAA materials.

Please see below for updates on the status of the budget, what to expect, and guidance on how to navigate the current sales climate.
(last updated 2/4/2026)

Budget Resources

H.R.1 OBBBA Overview

Department of War