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Congress Finalizes Majority of FY2026 Appropriations, DHS Funding Impasse Leads to Partial Shutdown

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Congressional Appropriations Finalized for FY2026; DHS Faces Partial Shutdown

Congressional committees have largely finalized appropriations for Fiscal Year 2026, combining several spending bills to fund a majority of federal agencies and avert a widespread government shutdown. However, an impasse over funding for the Department of Homeland Security (DHS), following two fatal shootings involving federal immigration officers in Minneapolis, has led to a partial shutdown of that department. Negotiations between congressional Democrats and the White House regarding immigration enforcement reforms remain ongoing.

Congressional Appropriations Process Concludes

Congress has finalized a series of appropriations packages to fund federal agencies through Fiscal Year 2026, aiming to complete all 12 annual spending bills and prevent a government shutdown. The process involved multiple "minibus" packages, with the final four-bill package released on Tuesday and passed by the House, now awaiting Senate consideration.

Overall spending levels in the finalized packages are slightly below current allocations, resulting in minor funding reductions for several agencies. These reductions are less substantial than the more significant cuts initially proposed by the Trump administration across various departments. The legislation provides more explicit direction to the administration regarding spending decisions compared to previous stopgap measures. The White House endorsed the measure, calling it a "fiscally responsible bill."

NASA Funding Details

For Fiscal Year 2026, NASA's appropriation is set at $24.438 billion, a $400 million reduction from its FY2025 budget of $24.8 billion. This figure represents a rejection of the Trump administration's initial proposal, which sought a 24.3 percent reduction for the agency. The Senate approved $5.63 billion more for NASA than initially requested by the administration.

Specific allocations within NASA's budget include:

  • Science Budget: $7.25 billion, an increase from the initial FY2026 request of $3.9 billion, though a reduction from the FY2025 enacted amount of $7.33 billion.
  • Exploration Budget: $7.78 billion, initially requested at $8.31 billion.

The agreement rejects the proposed termination of the Space Launch System (SLS) and Orion programs following Artemis III. It also prohibits diverting funds from the Artemis Moon to Mars Transportation account unless a commercial alternative is demonstrated to meet or exceed the capabilities of the SLS and Orion systems.

Regarding a proposed space vehicle transfer to Houston, US Senator John Cornyn (R-TX) previously stated that NASA Administrator Jared Isaacman had committed to fulfilling a provision of the One Big Beautiful Bill Act (OBBA) to move the Space Shuttle Discovery from Virginia. Administrator Isaacman has not confirmed Discovery's selection, emphasizing that the relocation must be within budget and ensure vehicle safety, and has indicated other options, such as providing a spacecraft from future Artemis missions (Artemis II, III, IV, and V), would be considered if these conditions are not met. NASA has also been directed to provide a briefing on the future of its Headquarters.

Department of Homeland Security Funding Impasse

Funding for the Department of Homeland Security (DHS) became a central point of contention in the appropriations process, leading to a partial shutdown of the department after a midnight Friday deadline was missed. This impasse followed the fatal shootings of two U.S. citizens, Alex Pretti and Renee Good, by federal immigration officers in Minneapolis.

Congressional Democrats subsequently conditioned their support for DHS funding on the implementation of specific reforms in immigration enforcement tactics. The House of Representatives approved a DHS funding bill by a vote of 220-207, with seven House Democrats voting against it due to concerns regarding Immigration and Customs Enforcement (ICE) tactics. In the Senate, a six-bill funding package, including DHS, failed to advance with a vote of 45-55, as Democrats withheld support. While the Senate had approved a two-week stopgap bill specifically for DHS to allow for negotiations, this temporary measure was later rejected by Democrats. The House had passed a package aiming to fund DHS until February 13; however, the Senate went into recess without approving a broader deal. As of the deadline, lawmakers had left Washington for a week-long recess without reaching a final agreement on DHS funding.

Partial DHS Shutdown Commences

A partial shutdown of the Department of Homeland Security commenced early Saturday due to the lack of an appropriations agreement. This marks the third government shutdown in recent months, limited to DHS, and does not affect other federal agencies already funded for the fiscal year.

The shutdown impacts DHS's workforce of over 260,000 individuals. Approximately 95% of Transportation Security Administration (TSA) officers are designated as essential personnel and are required to continue working without pay. Trade groups representing the U.S. travel industry and major airlines have warned that a prolonged lapse in DHS appropriations could lead to increased security wait times at commercial airports due to potential increases in unscheduled absences among TSA staff.

Federal Emergency Management Agency (FEMA) operations will continue for ongoing emergency responses, with its Disaster Relief Fund having sufficient balances. However, long-term disaster recovery efforts, such as reimbursements to states, may be slowed. The U.S. Coast Guard may have to suspend all non-essential missions, including some training and maintenance, though essential missions like search and rescue will continue. Hundreds of staff at the Cybersecurity and Infrastructure Security Agency (CISA) are subject to furlough.

Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) operations are largely expected to continue without significant interruption. These agencies received substantial funding infusions of approximately $75 billion for ICE and $12 billion for CBP last summer through the "One Big Beautiful Bill," mitigating immediate impacts on their enforcement activities. U.S. Citizenship and Immigration Services (USCIS) employees will also continue to receive pay as the agency is primarily funded by application fees.

Immigration Enforcement: Shootings, Tactics, and Reforms

The fatal shootings of Alex Pretti and Renee Good by federal immigration officers in Minneapolis intensified scrutiny of federal immigration enforcement tactics. Congressional hearings were conducted with Todd Lyons, acting director of ICE; Rodney Scott, commissioner of CBP; and Joseph Edlow, director of USCIS.

During these hearings, officials defended their agencies' operations. Lyons stated that ICE operations were "only getting started" and would not be deterred, declining to comment directly on the Minneapolis deaths citing ongoing investigations. He also declined to apologize for the government's classification of the activists as "domestic terrorists." Scott disputed claims that Pretti posed no threat, stating he was non-compliant. Lyons acknowledged that ICE detains U.S. citizens, though he denied arresting them. Public scrutiny of the Trump administration's immigration tactics has increased, with recent polls indicating that a majority of Americans believe federal agents have exceeded appropriate boundaries in immigration law enforcement.

Democrats presented a series of demands for reform, including:

  • Prohibiting officers from wearing masks and mandating clearer identification, such as last names, on uniforms.
  • Requiring judicial warrants for home entries, arguing against the use of administrative warrants.
  • Ending "roving patrols" and prohibiting enforcement near sensitive locations such as medical facilities, schools, and churches.
  • Mandating the use of body cameras for all agents.
  • Establishing a uniform code of conduct, use-of-force rules, and de-escalation training.
  • Facilitating independent investigations into misconduct and enabling legal action against officers.
  • Verifying non-citizenship before detention and establishing minimum standards for detention centers.
  • Implementing a ban on racial profiling.
  • Preventing "paramilitary police" by standardizing uniforms and equipment.

Some Republican lawmakers expressed concern over the incidents and called for hearings or independent investigations, with Sen. Rand Paul questioning the tactics used by federal officers. Others resisted policy changes, citing concerns about hindering enforcement operations or the risk of doxing federal agents if masks were banned. Body cameras received bipartisan support, with DHS Secretary Kristi Noem stating they would be issued to Minneapolis officers immediately and expanded nationwide as funding becomes available. Lyons reported 3,000 cameras for 13,000 ICE officers, with an additional 6,000 being deployed. Scott noted only half of CBP's 20,000 officers currently have body cameras.

ICE reported 37 investigations into officers' use of force in the past year, with 18 closed and 19 pending or referred for further action. Concerns were raised regarding the shortening of new ICE recruits' training curriculum from 75 to 42 days, with on-the-job training emphasized.

Funding for Other Federal Agencies

The appropriations packages include detailed spending levels for various departments, often rejecting significant cuts proposed by the Trump administration:

  • Environmental Protection Agency (EPA): Funding decreased by 4% but remained $4.7 billion above the Trump administration's proposal, with an allocation of $8.8 billion.
  • Department of Energy: Funding remained largely stable, contrary to a nearly $4 billion proposed cut. The Office of Science avoided a $1 billion proposed cut.
  • National Science Foundation (NSF): A 3% funding reduction was included, instead of a 57% cut proposed by the Trump administration. The Senate approved billions more than requested.
  • National Oceanic and Atmospheric Administration (NOAA): Proposed funding was approximately $1.7 billion higher than the Trump administration's request, with $224 million allocated for climate research and funding for its satellite program restored.
  • National Weather Service: $10 million was allocated to ensure all Weather Forecast Offices are fully staffed, with an overall funding increase for staffing.
  • National Park Service: Congress requested bi-monthly briefings on staffing levels, with funding intended to restore staffing to fiscal 2024 levels.
  • Indian Health Service: An allocation of $38 million was provided for staffing new facilities.
  • National Endowments for the Arts and Humanities: Each received $207 million, maintaining funding levels and rejecting proposed eliminations.
  • Office of Energy Efficiency and Renewable Energy: Saw a 10% funding reduction, a smaller cut than the nearly 75% reduction proposed. The Weatherization Assistance Program received increased funding, rejecting a proposed elimination and securing a $3 million increase.
  • National Institutes of Health (NIH): Will receive a $415 million funding increase, despite a proposed 40% reduction, and administration policies limiting its grants were reversed.
  • Centers for Disease Control and Prevention (CDC): Maintained its current appropriation, while the Trump administration suggested a 50% cut.
  • Biomedical Advanced Research and Development Authority (BARDA): Received its full $1 billion funding, avoiding a proposed 36% cut.
  • Advanced Research Projects Agency for Health (ARPA-H): Avoided a proposed 33% reduction.
  • Pentagon Medical Research: The package provides $2.7 billion, an increase of $770 million from fiscal 2025.
  • Federal Aviation Administration (FAA): Will see an overall 8% budget increase, including $40 million for a 3.8% pay raise for air traffic controllers and funding to increase the workforce by 2,500 individuals.
  • U.S. Citizenship and Immigration Services (USCIS): Tasked with evaluating staffing needs to address asylum case backlogs.
  • Social Security Administration (SSA): Lawmakers allocated $50 million for new hiring, urging boosted headcounts in field offices and avoidance of closures or reduced hours.
  • Internal Revenue Service (IRS): Lawmakers agreed to claw back an additional $11.7 billion.
  • Corporation for Public Broadcasting: Received no appropriation after its funding was rescinded last year.

Several reorganization efforts proposed by the Trump administration were rejected, including consolidating federal wildfire fighting efforts, merging the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the Drug Enforcement Administration (DEA), and phasing out the Federal Emergency Management Agency (FEMA). Congress also blocked efforts to eliminate the Institute of Museum and Library Services and the Corporation for National and Community Service.