• News

FY2026 Appropriations

We are tracking the status of FY2026 appropriations, where things stand, and what it all means for bond lawyers.

Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.

Last Updated April 30, 2026

The Federal Government’s Fiscal Year 2025 (see FY2025 tracker) began on October 1, 2024. Congress passed multiple continuing resolutions (CR) to sustain the federal government’s outlays largely at FY2024 levels. These actions included the passage of a CR that funded most of the government at FY2024 levels through the end of FY2025 on September 30, 2025. Congress has subsequently appropriated the federal government through part of FY2026 through a series of CRs and a omnibus package. As of the “Last Updated” date for this article, the federal government is mostly appropriated through the end of the fiscal year with a notable exception for select immigration enforcement programs.

DHS Partial Funding Bill

Appropriations for most federal programs under the Department of Homeland Security lapsed in February due to an impasse on immigration enforcement policy matters. The lapse resulted in the longest partial government shutdown in U.S. history. On April 30, 2026, the House of Representatives passed a Senate proposal to fund most DHS program areas for the remainder FY2026, while leaving out appropriations for specific immigration enforcement programs. The measure ends the partial government shutdown for a number of areas under DHS, including the Transportation Security Administration (TSA), the U.S. Coast Guard, and the Federal Emergency Management Agency (FEMA). At this point in time, congressional Republican leadership aims to address the remaining areas with lapsed appropriations via a potential forthcoming reconciliation package.

Note on PAYGO Sequestration

Section 8001 of the November continuing appropriations act (H.R. 5371) instructs that, for the purposes of the annual report issued pursuant to section 5 of the Statutory Pay-As-You-Go (PAYGO) Act of 2010 (2 U.S.C. 934), the balances on the PAYGO scorecards established pursuant to paragraphs (4) and (5) of section 4(d) of PAYGO shall be zero. The provision eliminates the risk of additional sequestration to mandatory spending, such as payments for tax credit and direct pay bonds, due to PAYGO for the remainder of calendar years 2025 and 2026.

100 US Dollar Bills. Source: Jericho via Wikimedia Commons.

New to Appropriations?

Check out our primer on the federal appropriations process.

Updates

You can track the status of both chambers’ work to complete all 12 appropriations bills here. NABL will continue to keep members informed as more becomes available. [New Updates Highlighted]

Details of November Package

  • Full year appropriations for three areas of the government: agriculture and FDA; veterans affairs and military construction; and the legislative branch.
  • A CR to maintain federal appropriations for the remainder of the federal government through January 30.
  • A promised vote in December on extending the ACA tax credit subsidies.
  • Rehiring of federal employees terminated during the shutdown and back pay for all federal employees.

Week-End Update: October 31, 2025

The shutdown has spanned the entirety of October without an immediate solution in sight. Democrats maintain that any deal on federal appropriations must also address several healthcare priorities, including the extension of expiring tax credits for select Affordable Care Act (ACA) marketplace plans. Senate Republican leadership reiterate that they will negotiate on various other measures only after the government reopens, and Speaker Mike Johnson (R-LA) has kept the House out of session since September.

Note on SLGS

NABL has received multiple inquiries into the status of new sales of State and Local Government Series (SLGS) securities. The Treasury Department historically suspends such sales during the approach to a federal debt ceiling, which is a different financial situation than a lapse in appropriations. Federal money for new SLGS is a form of mandatory expenditure and therefore should not be impacted by the appropriations process. Interested municipal market participants may wish to consult the Bureau of Fiscal Services (BFS) contingency plan for more details on how personnel furloughs may impact staff service. 

Note on the Shutdown

After weeks of political impasse, federal appropriations lapsed at 12:00 AM (EDT) on October 1, 2025 without a clear path forward on FY2026 appropriations. As a result, the federal government has begun implementing a widespread shutdown. Select federal government functions will continue to operate as normal for the time being due to advance appropriations or as a result of funding streams other than the annual appropriations process. Other federal services continue due to their essential nature.

Most government shutdowns resolve quickly and pose little risk to most municipal-bond-financed projects. The duration and extent of the shutdown, as well as the facts and circumstances of specific projects, issuers, and borrowers will help determine what, if any, impacts a government shutdown may pose.

Municipal market participants may turn to counsel to discuss potential implications of a shutdown to their individual situations. Bond lawyers may wish to consult federal agency contingency plans for more information on how specific federal programs, operations, and sources of revenue related to municipal bond-financed projects will be impacted by the ongoing federal government shutdown. NABL offers high-level considerations for municipal market participants in the event of a lapse in federal appropriations on our issue brief on the “Federal Appropriations Process.”

Latest Agency Contingency Plans

Below are the latest available contingency plans for relevant federal agencies as of October 1, 2025. These plans, as well as the status of federal operations, are subject to change during a federal government shutdown.

More on Appropriations

Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
  • News

FY2026 Appropriations

We are tracking the status of FY2026 appropriations, where things stand, and what it all means for bond lawyers.

Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
  • News

FY2025 Appropriations

We are tracking the status of FY2025 appropriations, where things stand, and what it all means for bond lawyers.

U.S. Capitol Building. Source: Ron Cogswell via Flickr
  • News

FY2024 Appropriations

Review of the FY2024 federal appropriations process.

Other Resources

Market graphic imposed on US Treasury Building in Washington, D.C.
Market graphic imposed on US Treasury Building in Washington, D.C.
  • Issue Briefs

Understanding the Debt Ceiling

What are the debt ceiling and federal downgrades, and what do they mean for municipal bonds.

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Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
Image of hearing room sign outside of the U.S. Senate Committee on Appropriations.
  • News

FY2026 Appropriations

We are tracking the status of FY2026 appropriations, where things stand, and what it all means for bond lawyers.

U.S. Capitol Building with text of Senate Budget Resolution No. 33 superimposed.
  • News

Reconciliation 2.0

What’s happening? And what’s next for a potential second budget bill?

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Legislative To Do’s (and Impasses) Mount

From “Reconciliation 2.0” to housing reforms, here’s a look at what we’re tracking as Congress gears up for April recess at the end of next week.

The Internal Revenue Services (IRS) Building in Washington, D.C.
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New Proposed Rules on Tax-Advantaged Bonds

Proposed regulations from the U.S. Treasury Department would update certain arbitrage rules and definitions.

  • The Bond Lawyer

The Bond Lawyer – Vol. 49 | No. 4

NABL’s Scholarly Journal providing expert commentary and analysis of recent developments in municipal bond law and public finance.

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A Busy Year for Muni Advocacy

Where we’ve been in 2025, and what’s ahead in 2026.

  • The Bond Lawyer

The Bond Lawyer – Vol. 49 | No. 3

NABL’s Scholarly Journal providing expert commentary and analysis of recent developments in municipal bond law and public finance.

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A Note from our New COO

Dana Anaman joined the team on Monday, September 29, as NABL’s new Chief Operating Officer.

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NABL Announces Dana Anaman as New Chief Operating Officer

On Wednesday, September 3, 2025, NABL President Jason Akers wrote a member-wide letter announcing that Dana Anaman will join the National Association of Bond Lawyers (NABL) as our new Chief…

Public Finance’s Vital Role in Making Housing More Affordable in Our Communities

In today’s economic environment, government subsidies are essential to encourage developers to produce quality housing that is affordable for lower-income families.

U.S. Capitol Building in Washington DC in front of a NABL pattern.
U.S. Capitol Building in Washington DC in front of a NABL pattern.
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One, Big, Beautiful Bill Act (H.R. 1)

In July 2025, Congress passed a large tax package to address the expirations of the Tax Cuts and Jobs Act (TCJA). Here’s what municipal market participants should know.

  • The Bond Lawyer

The Bond Lawyer – Vol. 49 | No. 2

NABL’s Scholarly Journal providing expert commentary and analysis of recent developments in municipal bond law and public finance.