Top House and Senate appropriators remain deadlocked over fiscal year 2025 spending, unable to reach agreement on a topline figure for the 12 annual bills, even as the threat of a government shutdown grows.
The chief sticking point remains Democrats’ demand for language binding President Donald Trump to spend funds as appropriated by Congress, according to sources in both parties. Republicans refuse to give in on that point, saying they won’t do anything to limit Trump’s options. Federal agencies will run out of money after March 14.
Senate Appropriations Committee Chair Susan Collins (R-Maine) said she still believes a deal is possible, although the rapidly approaching deadline has become an issue.
“I do, although I am becoming increasingly concerned about the small amount of time that is left before a shutdown would kick in,” Collins said Tuesday night when asked whether she believes a bipartisan compromise is achievable.
Collins added that she and House Appropriations Committee Chair Tom Cole (R-Okla.) “made another offer over the weekend. It is more than fair. And we’ve yet to hear back from the Democrats.”
The dispute over government funding comes as official Washington is in an uproar over the Trump administration’s decision to fire tens of thousands of federal employees as part of mega-billionaire Elon Musk’s DOGE initiative. Lawmakers in both parties are stunned by the size and speed of the layoffs, which are spreading across numerous agencies and departments.
GOP efforts to push through massive reconciliation bills in order to extend the 2017 Trump tax cuts have also angered Democrats.
But while DOGE and reconciliation get the headlines, the dispute over FY 2025 spending may cause the more immediate crisis.
Sources in both parties say the two sides aren’t that far apart on money, but they remain deeply divided over impoundment and Trump’s ability to redirect — or refuse to spend — congressionally approved funding that has been signed into law. Democrats insist nothing short of ironclad agreements could restrain Trump and OMB Director Russ Vought from impounding funds approved by Congress even after Trump has signed spending bills into law.
