S2882119th CongressWALLET

Continuing Appropriations and Extensions and Other Matters Act, 2026

Sponsored By: Senator Murray, Patty [D-WA]

Failed

Summary

Keeps federal programs running at FY2025 funding levels while pausing new starts and extending dozens of program authorities, with targeted one-time and emergency add-ons across health, housing, defense, and research. This package combines a year-long funding freeze with specific extensions and permanent tweaks to health law subsidies.

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Families and people buying marketplace coverage: Permanently removes the Affordable Care Act's 400% income cap and replaces it with a new sliding‑scale premium tax credit table, changing how subsidies scale with income.
Renters and homeless service providers: Renews HUD Continuum of Care grants and youth homelessness demonstrations for 12 months and allows Tenant‑Based Rental Assistance funds to be used to prevent loss of aid, using FY2025 fair market rents for renewals.
Federal agencies, researchers, and defense contractors: Keeps agency budgets and ongoing missions at FY2025 rates including NASA, NSF, and NOAA, restricts new Defense Production starts, and provides targeted sums for items like submarine obligations and prototyping.

*The bill instructs that its divisions' budgetary effects not be counted on PAYGO scorecards, influencing scorekeeping treatment rather than stating an overall deficit impact.*

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 15 benefits, 1 costs, 1 mixed.

WIC operations funding set

This bill sought to provide $8,200,000,000 for WIC operations for the covered period. The funding would have been available through October 31, 2025 to support local WIC services and benefits.

More rental help for HUD renters

This bill sought to require HUD to noncompetitively renew Continuum of Care grants and youth homelessness demonstration projects for a 12-month period, with cost-of-living adjustments and use of FY2025 fair market rents. It also would have allowed FY2026 Tenant-Based Rental Assistance funds to be used to prevent terminations of rental assistance from 2025 shortfalls after 3 business days' notice to Appropriations committees. The actions were aimed at preventing families from losing rental help.

Expanded Marketplace premium tax credit

This bill sought to permanently change the Affordable Care Act premium tax credit by removing the 400% income cap and replacing the formula with a sliding scale tied to income as a percent of the federal poverty line. That would have changed how much people pay for Marketplace premiums. The statute would have set the top applicable percentage at 8.5 percent for the highest income tier.

One-month extensions for many programs

This bill sought to move many expiration dates from September 30, 2025 to October 31, 2025. The extensions covered a wide range of authorities such as parts of the Defense Production Act, cybersecurity authorizations, Food for Peace authorities, and multiple VA and transportation demonstration authorities. Had it passed, it would have kept many programs and legal authorities active for one more month.

Temporary government funding through October

This bill sought to continue federal funding and authorities at FY2025 rates until the earliest of enactment of FY2026 appropriations for an item or October 31, 2025. It would have kept entitlements and mandatory payments flowing and allowed some mandatory obligations due after October to be paid within 30 days. The change aimed to avoid interruptions to many government programs and benefit checks.

Medicare and Medicaid timing changes

This bill sought to extend multiple Medicare telehealth waivers and Part D antiviral coverage through October 31, 2025. It would have delayed some Medicare rule start dates to November 1, 2025 and adjusted the timing of Medicaid DSH reductions, including a $4,509,863 allotment for Tennessee for Oct 1–31, 2025. At the same time it would have reduced the Medicare Improvement Fund amount to $1,033,000,000 and repealed Subtitle B of Public Law 119–21. The package mixed short extensions that preserved access and a statutory cut to a Medicare fund.

IHS staffing and operations funding

This bill sought to provide $72,265,000 for Indian Health Service operations and $8,050,000 for Indian Health Facilities operations to staff and run facilities opened, renovated, or expanded in FY2025–FY2026. The amounts could be apportioned up to the rate necessary to staff and operate those facilities for October 2025.

One-month grants for seniors and health

This bill sought to provide several one-month (Oct 1–31, 2025) payments and pro rata amounts for health and older-American outreach programs. Examples included $1,250,000 each for State Health Insurance Assistance Programs and area agencies on aging, plus other small one-month amounts for family-to-family health information centers and related grantees. The short payments were aimed at keeping services running during the covered month.

One-month veteran program funding

This bill sought to make several one-month appropriations and extensions for veterans' programs through October 31, 2025. It would have provided $35,000,000 for Supportive Services for Very Low-Income Veteran Families and $416,667 for a homeless veterans special needs grant for Oct 1–31, 2025. It also would have extended certain VA authorities and extended the Parker Gordon Fox suicide prevention grant authority into October 2025.

More SBA loan funding flexibility

This bill sought to let the Small Business Administration apportion loan account funds up to an operations rate needed to meet increased demand. That would have helped the SBA support more 7(a) guarantees, trust-certificate guarantees, 503 loans, and 303(b) debenture guarantees through October 31, 2025.

More courthouse security funding for Marshals

This bill sought to provide $30,000,000 for courthouse security renovations and an additional $30,000,000 to the U.S. Marshals Service for protective operations and federal judicial security. The funds were designated as emergency requirements and would have required quarterly reports to Appropriations committees.

More money for federal defense counsel

This bill sought to provide $1,534,910,000 for Defender Services to pay court-appointed defense counsel and authorized apportionment up to the rate needed to make those payments. The funding would have been available through October 31, 2025 to support indigent defense payments.

One-time payment to public broadcasting

This bill sought to appropriate $490,960,000 as a one-time FY2026 payment to the Corporation for Public Broadcasting, to be paid within 3 days of enactment and available until September 30, 2026. It directed the CPB formula to be applied as if $535,000,000 were available with certain suballocations excluded.

Extra year for unspent agency funds

This bill sought to let certain unobligated federal balances that met conditions remain available until September 30, 2026. The Director of OMB would have to list extended amounts by November 17, 2025 and the Comptroller General would audit and report by January 15, 2026. The change gave agencies more time to obligate unspent funds while adding oversight.

Limits on new Defense production

This bill sought to bar Department of Defense funds provided under the continuing authority from being used to start new production lines or raise production rates above FY2025 levels. It would have also blocked initiation of projects that lacked FY2025 authority and limited some multi-year procurements using advance procurement funds through October 31, 2025. The restrictions would have reduced DOD flexibility to expand procurement and could delay contracts for suppliers.

One-month Grain Standards updates

This bill sought to change certain Grain Standards Act dates to October 31, 2025 and apply an administrative cost limit for October 1–31, 2025. The provision was a one-month administrative change affecting grain handlers and related operations.

Short reauthorization for development finance

This bill sought to set the U.S. International Development Finance Corporation's statutory expiration to October 31, 2025. That would have kept the DFC's authority active for that month without changing who could apply for its financing.

Sponsors & CoSponsors

Sponsor

Murray, Patty [D-WA]

WA • D

Cosponsors

There are no cosponsors for this bill.