Washington, D.C., USA – 10 September 2025

The U.S. House of Representatives and Senate are back in session this week after their August recess, facing a critical and packed schedule dominated by two major issues: passing a national defense bill and averting a government shutdown with the fiscal year-end deadline less than three weeks away.

With the September 30 government funding deadline looming, Congress is under immense pressure to act. Lawmakers are in a familiar position, weighing options for a short-term continuing resolution to fund the government, potentially extending into early 2026, to avoid a partial or full shutdown. The ongoing debate over government funding is centered on disagreements over spending levels, particularly between defense and non-defense programs.

National Defense Authorization Act

A key focus for both chambers is the National Defense Authorization Act (NDAA) for fiscal year 2026. The NDAA, which authorizes funding for the Department of Defense, is considered “must-pass” legislation. The Senate Armed Services Committee has already approved its version of the bill, authorizing $924.7 billion for national defense. The House has also passed its own version of the legislation, which lifts total military spending over $1 trillion with additional funding allocated via a separate reconciliation bill.

The House’s version of the defense bill includes several key provisions, such as $13 billion for a new missile defense system and $10 billion for submarines. The debate over these bills highlights the different priorities of the two chambers and the continued focus on national security issues, including strategic competition with China and Russia.

Government Funding Deadline

The most immediate threat facing Congress is the September 30 deadline to pass a budget. If all 12 appropriations bills are not signed into law, a shutdown will occur. This would be the 29th consecutive year that lawmakers have failed to meet the basic deadline. A continuing resolution is widely seen as the most likely outcome, though the duration of such a measure remains a subject of intense debate.

The House Committee on Appropriations is already advancing key funding bills, including the Labor, Health and Human Services, Education, and Related Agencies funding bill, which proposes a 7% reduction from the previous enacted level. This sets up a clash with the Senate, where some lawmakers are pushing to protect funding for key programs.  The outcome of these negotiations will have a significant impact on a wide range of government services and programs.