Congress is officially in their last week of August recess, but the Federal budget saga continues. It’s dizzying, but we’re here to help make sense of all the budgetary tools the White House and Congress are trying to use.
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Here’s a recap of the last month: |
Budget Tool #1
Reconciliation: The catastrophe that is the "One Big Beautiful Bill"
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In case you somehow missed the passage of the “One Big Beautiful Bill,” lucky you, Congress met their self-imposed deadline of July 4 and it was as disastrous as we thought.
Why it matters: This egregious bill drastically changes the government's relationship to healthcare access in our nation, and effectively results in a backdoor abortion ban. Since the bill passed, Planned Parenthood clinics have already begun to shut down in Ohio, Texas, and California among others.
Additionally, the bill changes our safety net systems, limits access to healthcare, and undermines our ability to afford higher education, among other significant impacts.
Learn more about the impact of the bill here, additional details here, and read about the timeline for implementation of the bill here.
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Budget Tool #2
Rescissions Package: Pulling Back from the Agreement
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Congress approved the White House's request to cancel almost $9 billion in unspent funds, cutting foreign aid for life-saving global health programs, peacekeeping efforts, economic development abroad, and public broadcasting (NPR/PBS). Since the passage of the rescissions package, the Corporation for Public Broadcasting, which funds NPR and PBS, has announced its closure on September 30.
Why it Matters: The funds are being pulled from the 2025 bipartisan-approved Federal budget bills (appropriations bills). This sends a message to Congress that if the White House disapproves of an agreed upon spending allocation, they are fine rescinding it. In other words, they are fine undermining the agreements made in the Congressional Appropriations process.
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Budget Tool #3
Appropriations: Where are we again?
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While the budget for the current year (FY 2025) is set, Congress is in the middle of its recess and is behind on its appropriations process for FY 2026 which needs to be decided by September 30 to avoid a government shutdown.
Where We Stand: The Senate passed three bills out of 12, while the House has passed two bills out of 12. 😐 👀
Your Takeaway: The House and Senate are far apart on spending plans, which makes a government shutdown the topic of the news in September. Still, Congress can negotiate a short-term fix, called a "continuing resolution" that would keep agencies funded at the FY 2025 agreed level to keep the government running past September 30.
What's Ahead After Recess: Expect intense negotiations in September on the FY 2026 budget. The pressure will be on to pass a continuing resolution (CR) to avoid a shutdown on October 1. |
And, this is how money moves (or doesn’t) in Congress, for now. |
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Daniela Ochoa Diaz (she/her) Senior Director of Policy, URGE
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Building Young People Power for Reproductive Justice |
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