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September 30 funding deadline looms as Congress returns to session

Washington Council Ernst and Young
Washington Council Ernst & Young

Advisory services group that helps clients manage opportunities and risks associated with the legislative and regulatory process.

01 minute read 09 Sep 2025
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Tax

Government funding and the potential for a second reconciliation bill will take center stage as Congress returns from summer recess.

With Congress returning from its August recess, the focus has turned to extending government funding that expires after September 30 and on prospects for additional tax and health legislation. The additional legislation could take the form of another reconciliation bill that House Speaker Mike Johnson (R-LA) sees being completed “late in the fall” and/or a potential package of bipartisan priorities that could be attached to a year-end appropriations bill.

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Lawmakers are going to be busy during September focusing on the September 30 government funding deadline, and that process could have implications for moving additional tax and health legislation. In the past, it has been common for government funding to be patched beyond September 30 and then extended through a long-term spending bill, close to year end, that provides a vehicle for tax, health and other items.

 

Because the appropriations process is just getting off the ground, Congress will almost certainly need to enact a temporary continuing resolution (CR) to extend government funding beyond September 30. That will require the support of some Democrats because appropriations bills require 60 votes in the Senate.

 

Another reconciliation bill will be available to Republicans in the fall. In a July Bloomberg interview, Speaker Johnson said he hoped to pass a bill this fall that would address issues cut out of the OBBBA to meet reconciliation rules, without naming specific tax and health provisions. The Republican Study Committee (RSC) group of conservatives chaired by Rep. August Pfluger (R-TX) has launched a Reconciliation 2.0 Working Group and was reported to be meeting with conservative leaders and entertaining ideas for cutting entitlements and other health spending.

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Summary 

The House and Senate return from the August recess facing a quickly approaching government funding deadline. Congress will almost certainly be required to pass a temporary CR with some bipartisan support, which may be difficult given the degree of distrust between the parties.

About this article

Washington Council Ernst and Young
Washington Council Ernst & Young
Advisory services group that helps clients manage opportunities and risks associated with the legislative and regulatory process.
Related topics
Tax

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