Shutdown Looms as Congress Deadlocks Over Budget

From The Insider, the newsletter of the American Federation of Government Employees.

With current federal funding set to expire on September 30, the risk of a government shutdown is growing. This week, both the House and Senate debated competing budget proposals, but failed to reach agreement, stalling progress and deepening partisan divides.

Congress has yet to send any of the 12 full-year appropriations bills to the President’s desk. In the meantime, lawmakers are considering temporary funding measures — known as continuing resolutions (CRs) — to keep the government running.

Earlier this year, President Trump proposed deep cuts to domestic programs, but those proposals have seen little movement in Congress. Now, Republicans in both chambers have introduced what they call a “clean CR” to extend current funding levels through mid-November. Meanwhile, Democrats have offered a more comprehensive plan that would reverse steep Medicaid cuts included in Trump’s “One Big Beautiful Bill” and permanently extend ACA tax credits for millions of Americans.

The House narrowly passed the Republican CR, but it failed in the Senate, where 60 votes are typically required to advance major legislation. The bill received only 44 votes, with Republican Senators Rand Paul (KY) and Lisa Murkowski (AK) joining most Democrats in opposition. Only Senator John Fetterman (D-PA) broke ranks to support the GOP proposal.

While the Democratic alternative does not directly address key labor issues — such as restoring federal collective bargaining rights — it does seek to reassert Congressional authority over federal spending. The bill would limit the President’s ability to impose unilateral budget cuts, a tactic Trump used earlier this year to slash funding for foreign aid and public broadcasting. In a controversial move, he later attempted to bypass Congress entirely by introducing additional cuts late in the fiscal year. The Democratic proposal aims to block such end-runs around the legislative process.

A similar showdown in March ended when a group of Senate Democrats unexpectedly backed a Republican CR, extending funding through the end of September. That decision was met with backlash from party supporters, who saw it as a concession that allowed Trump to continue his aggressive push to shrink the federal government with minimal resistance.

“Congress has a duty to fund government agencies on time, but it has an equally important duty to rein in an out-of-control executive branch,” said AFGE National President Everett Kelley. “Without safeguards, federal employees will continue to face untenable working conditions. I urge both parties to come to the negotiating table and find common ground on the key issues facing most Americans — including the high cost of living, access to health care, and, for many of us, fair treatment on the job.”

As the deadline approaches, AFGE will continue to monitor developments and advocate for policies that protect federal workers, preserve critical services for the public, and strengthen workplace rights.