It looks like the Senate will have a tight squeeze to pass an appropriations package that includes funding for education and workforce development programs before a funding extension expires on Friday night.
As of Thursday afternoon, the Senate was still negotiating a path to pass the six remaining funding bills for fiscal year 2026 (FY26), with a looming January 30 deadline. The House last week passed the six bills as part of a “minibus” package that included the Labor-HHS-ED appropriations bill, which funds federal student aid, higher education grant programs, and apprenticeship and job training programs.
The minibus was a compromise product and had the requisite support from both the House and Senate prior to its passage in the House. Following House passage, the Senate was expected to quickly take up and pass the bill, sending it to the president’s desk before funding expires on January 30, and thereby avoiding a partial government shutdown.
However, events over the past week have increased scrutiny of one of the bills included in the package – funding for the Department of Homeland Security (DHS). Senate Democrats have vowed not to fund DHS unless that bill includes significant oversight and policy changes for the agency. Because appropriations bills require a 60-vote majority in the Senate, the entire package is now at a standstill until a compromise is reached between Republicans and Democrats.
Senate’s options
At our press time, it was unclear how Senate Majority Leader John Thune (R-South Dakota) and Senate Minority Leader Chuck Schumer (D-New York) will reach a deal. It is most likely that they will allow the five noncontroversial funding bills (including LHHS-ED) to advance as their own minibus package and pursue a short-term continuing resolution (CR) to fund DHS while negotiations continue. Alternatively, the Senate could pursue a short-term CR for all six remaining appropriations bills, though there appears to be less appetite for this approach.
Either solution would require several procedural steps to reshape the package and sending the revised legislation back to the House. The House is on recess until Monday, meaning that funding will expire before the president can sign any new minibus appropriations or CR packages.
Potential shutdown looms
A partial government shutdown therefore appears inevitable, though it could last only through the weekend until the House returns and can send the funding bills to the president. The shutdown could last longer if negotiations stall in the Senate or if the House has difficulty accepting what the Senate sends its way.
As with past government shutdowns, all non-essential federal personnel would likely be furloughed, including those at the departments of Education and Labor. Administration of federal financial aid should continue as usual, as those programs receive mandatory funding. However, institutional grant administration, technical assistance and support functions, and policy offices may be disrupted for the duration of the shutdown. A shutdown that lasts only through the weekend is unlikely to impact campus operations.
