Congress Resolves Funding Impasse and Turns to President’s Priorities

by Mitch Coppes, Federal Government Affairs Manager, Goodwill Industries International

Recently, the House and Senate agreed to pass a Continuing Resolution (CR) to fund the federal government for the remainder of Fiscal Year 2025 (FY25).  The bill, which was signed into law by President Trump, averted a government shutdown that would have gone into effect on March 15 when the previous CR expired.

The CR would generally extend the funding levels from FY24 for most federal programs, though it will increase funding for defense, immigration enforcement, and veterans’ affairs. The bill omits $15.9 billion for FY25 Community Project Funding/Congressionally Directed Spending that would have been available to directly fund local projects and activities, including those at local Goodwill organizations. It would also extend the Temporary Assistance for Needy Families (TANF) program through September 30.

The resolution of FY25 funding comes as the Trump Administration continues efforts to broadly reduce the size of the federal workforce, eliminate diversity, equity and inclusion initiatives, and cancel certain federal contracts and program spending—though legal challenges to these executive actions have resulted in federal courts blocking or reversing the administration’s efforts to reshape government.

Congress will now turn its attention to negotiating a budget reconciliation package to enact Republican priorities on border security and immigration, taxes, defense, and energy policies that would likely be paid for through cuts to government spending in healthcare, green energy, and social services. This reconciliation bill would only require the support of a simple majority of members in both the House and Senate in order to pass, and Republican leaders hope to push legislation through both chambers this spring.