Congressional leaders released legislative text Tuesday for a bipartisan agreement that would fund most of the federal government ahead of the Jan. 30 shutdown deadline.
The deal — covering the Pentagon and some of the largest nondefense agencies — comes after two months of behind-the-scenes negotiations among top House and Senate appropriators following Congress’ end to the longest government shutdown in U.S. history.
House leaders plan to bring the legislation to the floor later this week. The package would increase defense spending to more than $839 billion and provide funding for the departments of Health and Human Services, Labor, Housing and Urban Development, Transportation, Education and Homeland Security.
DHS and ICE provisions draw scrutiny
In the wake of the fatal shooting by an ICE agent in Minneapolis earlier this month, congressional Democrats pushed for new conditions on DHS funding aimed at tightening oversight of the Trump administration’s immigration enforcement practices — even as some Democratic voters have called for defunding the agency entirely.
Under the compromise, ICE would remain funded at $10 billion for the fiscal year ending in September, while the bill would reduce funding targeted specifically for enforcement and removal efforts. It would also require DHS to spend $20 million to equip immigration enforcement agents with body cameras, direct the department to provide additional training focused on de-escalation during public interactions, and allocate $20 million for independent oversight of DHS detention facilities.
Connecticut Rep. Rosa DeLauro, the top Democratic appropriator in the House, said the legislation falls short of some broader reforms Democrats sought — including measures to prevent DHS from detaining and deporting U.S. citizens or limiting the use of personnel from other agencies to support immigration enforcement.
“I understand that many of my Democratic colleagues may be dissatisfied with any bill that funds ICE,” DeLauro said in a statement, adding that House Republicans have committed to holding a separate vote on DHS funding included in the package. “I share their frustration with the out-of-control agency.”
Democrats argue that allowing DHS funding to lapse would cut off resources for other critical components, including TSA and FEMA. They also warn that the Trump administration could continue bolstering ICE using a $75 billion immigration enforcement fund enacted through the party-line tax and spending package Republicans passed last summer.
Lawmakers say the other option — extending a stopgap funding patch — would preserve the current funding and policy framework while giving the administration additional flexibility in how DHS dollars are deployed.
New limits on shifting DHS funds
Both parties have sought to restrict the administration’s ability to move DHS money between accounts. To do that, the bill would reduce the amount DHS can transfer internally and suspend the department’s authority to shift funds if it fails to meet transparency requirements.
Domestic agency funding increases
The package also rejects several cuts the Trump administration requested.
Under the agreement:
- The Education Department would receive $79 billion, a modest $217 million increase above current funding.
- The Department of Health and Human Services would receive nearly $117 billion, an increase of $210 million.
- The Department of Labor would receive $13.7 billion, up $65 million.
Health care measures included
Also attached to the broader funding bill is bipartisan health care legislation that would tighten rules around drug intermediaries known as pharmacy benefit managers, renew several public health programs, and provide $4.6 billion in fiscal 2026 funding for community health centers.
The deal does not address Obamacare subsidies that expired on Jan. 1. It also omits most proposals from a White House health framework released last week. Much of the package had been positioned for passage in December 2024 but was derailed after opposition from Elon Musk and President Donald Trump.
Clock ticking toward shutdown deadline
Lawmakers have 10 days to clear the full package and send it to Trump for signature before funding expires for the agencies and programs included — which make up more than 70% of the annual discretionary funding Congress approves to keep the federal government operating.
Because the Senate is in recess this week, senators will need to pass the legislation when they return during the final week of January to prevent another lapse.
Earlier phases of funding have already moved through Congress. Under the stopgap funding patch enacted in November, lawmakers approved full-year funding for the departments of Agriculture and Veterans Affairs, along with operations of Congress and the FDA. Last week, the Senate passed a separate bill funding the departments of Justice, Interior, Commerce and Energy, plus the EPA, water programs and federal science initiatives.
The House also passed legislation last week to fund the departments of Treasury and State, along with the IRS and foreign aid. The Senate still must approve that bill as well to avert a partial shutdown at month’s end.
