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POLITICS · 1 min read

Funding deadline nears as Congress stalls on spending talks

Dec 23, 2025

What’s going on

  • Congress must pass new appropriations bills or extend current funding before Jan. 30. Without action, parts of the federal government would shut down when funds run out.
  • So far, lawmakers have made little visible progress toward a full-year agreement. Negotiations have not produced a package that can pass both the House and the Senate.
  • Talks involve House and Senate leaders, along with the chairs and top Republicans on the appropriations committees. Any final deal would also need White House approval.
  • Appropriations are annual bills that fund most federal agencies. When Congress cannot finish them on time, it often uses a short-term continuing resolution to keep agencies operating at current levels.
  • A partial shutdown would halt many nonessential services and delay pay for federal workers. Some operations continue, but agencies typically scale back, and contractors can face payment delays.
  • Lawmakers are also weighing a short-term extension to buy time for a broader deal. That can prevent an immediate shutdown but does not resolve the underlying spending fight.

Why it matters

  • A shutdown disrupts day-to-day government operations and creates uncertainty for workers, agencies, and businesses that rely on federal contracts. It can also slow processing and oversight work across federal departments.
  • Shutdown deadlines also force quick decisions on spending levels and policy riders. They test whether party leaders can unify their own members and negotiate across the Capitol.

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