Congress needs to pass a spending bill before Sept. 30 to avoid a government shutdown. That can come in two forms:

• A bill providing funding for all of fiscal year 2026, or
• A continuing resolution or stopgap spending bill that continues existing levels of funding for a shorter period of time to allow for continuing negotiations on a larger bill

The current proposals:

• House Republicans introduced a bill to fund the government through Nov. 21.
• Congressional Democrats proposed funding the government through Oct. 31 and linking it to an extension of the enhanced Affordable Care Act (ACA) premiums subsidies that expire at the end of 2025, reversing cuts to Medicaid and other health programs enacted in the reconciliation law, and placing limits on the President’s ability to unilaterally roll back funds approved by Congress.
• Some Republicans remain entirely opposed to any of the health care changes, while others are open to some version of an extension of the ACA tax credits but want to address it separately from a spending bill. Democrats say that extension cannot wait, as Americans are set to begin signing up for health insurance soon.

Where they stand:

• The House passed the Republicans’ bill, largely along party lines. President Trump had offered his support for this proposal.
• The Senate rejected both bills. 60 votes are required for passage in the Senate, meaning either proposal needs some support from both parties due to the Republicans’ small majority.

What’s coming: Lawmakers are set to spend time back home, with House Republicans not set to return until after a shutdown would be underway and the Senate unlikely to vote again until less than 48 hours before the deadline.

• There is no clear way to avoid a shutdown at midnight Sept. 30.