- Third continuing resolution proposed to fund agencies through September
- $13 billion non-defense cuts paired with $6 billion military increase
- Administration gains unilateral spending authority on 1,000+ projects
- House-approved bill forces Senate take-it-or-leave-it decision
With hours remaining before federal funding expired, Senate leaders intensified negotiations to prevent a partial government shutdown. The proposed continuing resolution maintains nearly $1.7 trillion in spending but shifts budgetary discretion to the executive branch, alarming Democratic legislators. Senate Majority Leader Chuck Schumer prioritized avoiding shutdown consequences over policy disagreements, stating closures would empower presidential overreach.
The bill extends controversial IRS funding reductions, effectively halving the $80 billion modernization package passed in 2022. Analysts note this undermines tax enforcement capabilities while disproportionately affecting middle-class audit rates. Federal contractors brace for payment delays as the Army Corps of Engineers gains flexibility to redirect infrastructure funds.
Washington D.C. faces unique burdens, with the legislation nullifying its $19 billion local budget. Mayor Muriel Bowser warned of emergency service reductions and delayed school improvements to meet $1.1 billion in immediate cuts. This regional impact highlights how continuing resolutions destabilize long-term municipal planning nationwide.
Progressive groups criticized the measure as a corporate handout, citing provisions allowing fossil fuel subsidies through discretionary environmental grants. However, Republican leaders framed opposition as partisan obstruction, noting 72% of federal workers would face furloughs in key states.
Looking ahead, the Senate prepares for contentious debates over Trump-era tax cuts set to expire in 2025. Budget hawks warn that combining deficit-funded extensions with current spending patterns could trigger bond rating downgrades. Bipartisan coalitions urge return to regular appropriations processes to restore congressional oversight.