Washington Gets Back to Work

The federal government has reopened following a 43-day government shutdown – the longest in U.S. history.

The deal to reopen Washington extends funding for most of the federal government through January 30 while fully funding Congress, the Departments of Agriculture and Veterans Affairs, the FDA, and military construction projects through the end of the fiscal year (September 30, 2026). However, that legislation did not include extensions of Affordable Care Act subsidies or reinstatement of Medicaid cuts, both of which were sought by Senate Democrats as part of the shutdown negotiations.

The bills covered under the January 30 deadline fund the Departments of Transportation, Commerce, Interior, and other agencies. Lawmakers will now pivot to reaching a final agreement to fund those for the remainder of the fiscal year.

Senator Majority Leader John Thune (R-SD) said last week he’ll move to combine the Defense, Labor – HHS, Commerce – Justice – Science and Transportation – HUD bills into one “minibus,” and the Interior funding bill could also be in the mix. While the Senate is technically out this week, it could hold an initial procedural vote on the effort at some point this week. However, any bill passed by the Senate will need to be reconciled with its House counterpart.

Meanwhile, the House returns to a packed legislative agenda, including bills dealing with federal land use, D.C.’s criminal code, and natural gas policy. Legislation moving through expedited procedures and throughout the week deals with veterans’ benefits and Department of Homeland Security operations, including at TSA, CBP, and FEMA.

Lawmakers are also holding committee hearings this week, including the following:

  • The House Financial Services Committee will discuss the future of deposit insurance

  • The Senate Judiciary Committee will discuss ways to protect children online

  • The House Small Business Committee will discuss domestic manufacturing

  • The Senate Environment and Public Works Committee will consider PFAS removal policy

  • The House Foreign Affairs Committee will discuss export control loopholes regarding chipmaking