Earlier today, the Senate failed to advance legislation that would have completed the FY 2026 funding cycle and prevented a partial shutdown on January 31st. On Tuesday, the House passed H.R. 7148, the Consolidated Appropriations Act of 2026, introduced by Congressman Cole (R-OK), with a 341-88 vote. However, the legislation lacked the required votes to overcome a Senate cloture vote, propelling the federal government toward a second shutdown for the fiscal year.
A key difference is that this shutdown will be a “partial shutdown” with the following departments and agencies expected to have their funding run out Saturday if Congress cannot reach a deal:
- Defense
- Financial Services
- Homeland Security
- Labor, Health and Human Services, & Education
- National Security & State
- Transportation & Housing, and Urban Development
Disagreements over Homeland Security funding provisions led H.R. 7148 to fall short of the votes needed to overcome a Senate filibuster. Congress now considers multiple options for funding for FY 26:
- Passing a “mini-bus” (term for a bill that is smaller-scale than omnibus) that would fund all of the departments except for Homeland Security, if possible;
- pass a short-term Continuing Resolution (CR);
- rewriting the legislation funding Homeland Security so that it would pass a Senate filibuster;
- or shut down the government.
With the House in recess, a partial shutdown, even if short-term, appears likely.
With Congressional primaries starting on March 3rd and the upcoming midterm elections on November 3rd, this year Congress faces a shorter legislative calendar, made even shorter by shutdowns and the delayed passage of funding legislation so late into the 2026 fiscal year.
NAFOA encourages Member Tribes to consider developing and revising funding contingency plans to prepare for potential disruptions and delays in federal support, particularly for funding that flows from the impacted departments.
If you have any questions or need additional information, contact Nicholas Lovesee, Policy Director at nicholas@nafoa.org, or Marisa Joseph, Policy Specialist, at marisa@nafoa.org.
