January 8, 2026


House Passes Key Spending Bills, Averting Shutdown Risks and Addressing Earmark Controversies

The House of Representatives successfully passed three critical government spending bills on Thursday, taking a significant step towards securing federal funding before the looming January 30 deadline, which could precipitate a government shutdown. The legislation, which addresses funding for the Departments of Energy, Commerce, Interior, and Justice, as well as water programs and the EPA, passed amid a tense political backdrop that highlighted divisions within party lines.

In a strategic move to counter resistance from conservative members, the bills were split to allow separate votes, thereby isolating the contentious Commerce-Justice-Science bill from the less controversial Interior-Environment and Energy-Water bills. This division enabled the House to pass the Commerce-Justice-Science bill with a vote of 375-47, despite opposition from three dozen Republicans. The combined Interior-EPA and Energy-Water measures saw an overwhelmingly favorable vote of 419-6.

The process was not without its challenges. A group of GOP fiscal hawks threatened to derail the procedural rule that would facilitate these votes unless certain earmarks were removed from the package. Their demand also included a revamp of the earmarks process for future legislation. In response, concessions were made including the removal of a contentious $1 million earmark proposed by Rep. Ilhan Omar (D-Minn.) for a local program.

House Appropriations Chair Tom Cole (R-Okla.) championed the bills, emphasizing their basis in bipartisan and bicameral consensus and highlighting the rigorous legislative process involved. "It wasn’t meant to be easy. In fact, difficulty is what separates serious legislating from political convenience,” he stated during a floor speech.

The final passage vote on Thursday stood at 397-28, sending the reconstituted package to the Senate, where Majority Leader John Thune is expected to bring it up for consideration as early as next week. This legislative push is part of a broader effort to enact full-year funding for fiscal year 2026. However, significant challenges remain as six crucial spending measures have yet to be advanced, including those for Defense and Labor-HHS-Education, which together account for nearly 70 percent of all federal discretionary spending.

Further complicating the legislative landscape is the aftermath of a recent incident in Minneapolis involving a U.S. Immigration and Customs Enforcement agent, which is expected to impact the discussions surrounding the Homeland Security funding in the upcoming package.

Despite these hurdles, there is a sense of commitment across party lines to navigate these complex legislative waters. Appropriators, buoyed by a cooperative spirit, are already preparing the next spending package, with legislative text potentially emerging over the weekend.

The bills passed also reject significant cuts proposed by the White House, opting instead for more nuanced reductions and increases in certain areas. Notably, the EPA will see a cut of 4 percent, a stark contrast to the much larger reductions initially sought, while trade agencies are set to receive a substantial funding boost, reflecting shifting priorities in the face of global economic challenges.