Key Insights for Federal Agencies on Government Reopening Funding Deal
Congress is preparing to reopen the government after an extended absence of House members. A significant vote on a spending package took place in the Senate, setting crucial funding levels across various federal departments.
Key Insights on Government Reopening Funding Deal
The proposed bill ensures that funding remains at pre-shutdown levels through a continuing resolution (CR) up until January 30. This resolution includes critical provisions for federal workers affected by the previous shutdown.
Impact on Federal Employees
- Furloughed employees will receive backpay.
- More than 4,000 layoffs during the shutdown will be canceled.
- No further reductions in force (RIFs) will occur until January.
Federal employees working at the Departments of Commerce, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Treasury, and the Environmental Protection Agency will be reinstated following the layoffs issued during the funding lapse. However, those who were terminated before the shutdown will not benefit from this deal.
Key Changes for the USDA
The U.S. Department of Agriculture (USDA) is undergoing significant restructuring, planning to move 2,600 employees outside Washington, D.C., and reduce its office footprint. Lawmakers emphasized that Congress retains ultimate authority over next year’s funding levels for USDA operations.
- Congress must approve any shifts in staffing through specific statutory authority.
- Previous fund transfers by USDA without congressional notification drew criticism from Democrats.
In fiscal adjustments, the USDA and Food and Drug Administration (FDA) faced a $415 million cut reflecting staffing changes initiated during the Trump administration. Notably, while a proposed 11% cut to FDA funding was rejected, key research programs received continued support.
Veterans Affairs Department (VA) Oversight
Initial proposals to cut 80,000 VA positions were revised downward to 30,000, with an emphasis on voluntary separations. Lawmakers mandated that VA maintain staff levels necessary for effective benefit delivery and healthcare services.
- VA’s discretionary budget saw a 2% increase over fiscal 2025 levels.
- A staffing floor on the Veterans Crisis Line must be retained.
- VA must report back to Congress within 90 days on staffing models for better service delivery.
Government Accountability Office (GAO) Funding
The funding agreement also secured flat funding for the GAO for fiscal 2026. This decision countered House proposals aiming to reduce the agency’s budget by half. Additionally, efforts to limit GAO’s authority to challenge the administration for violations of the 1974 Impoundment Control Act were rejected.
In conclusion, the provisions outlined in the funding deal reflect a commitment to stabilizing federal operations and ensuring the welfare of government employees during the reopening process.
