With their summer recess ending, members of Congress will return to Washington, D.C., with a critical and immediate task: funding the federal government for fiscal year 2026. A Sept. 30 deadline is approaching fast, and lawmakers will have only a few weeks to pass legislation to avert a government shutdown.
For the business community, the uncertainty caused by this familiar political gridlock is a significant concern, echoing the issues Michigan’s own state budget director raised about the “chaos in Washington, D.C., causing uncertainty” for our state’s fiscal planning.
Serious bipartisan talks on a budget have not yet begun, and the House and Senate remain far apart on a path forward. The House has advanced several partisan funding bills that face opposition from Democrats. In contrast, the Senate has pursued a more bipartisan process, resulting in two vastly different funding proposals.
To date, the House has passed only two of the 12 annual funding bills, while the Senate has passed three. This lack of progress makes it highly improbable that a full budget will be agreed upon before the deadline. It has been 28 years since Congress has funded the government on time, and this year appears to be no different.
A government shutdown would cause significant economic instability, disrupting federal services, delaying payments to contractors, and undermining consumer and business confidence. The Chamber promotes fiscal responsibility and bipartisan cooperation to maintain stable government operations that are vital for a healthy business environment.
The most likely outcome is a short-term stopgap spending bill, also known as a continuing resolution, to keep the government open while negotiations continue. However, deep disagreements over spending levels and policy riders could complicate even this temporary solution.
The Chamber will continue to monitor the situation closely and advocate for a swift resolution to prevent a costly government shutdown and provide the certainty that Michigan’s business community needs to thrive.
