Congress Releases Final $1.4 Trillion Spending Package to Avert Shutdown, Resolves ICE Funding Fight

Congressional leaders have unveiled a final, massive $1.4 trillion spending package intended to fund the federal government for the remainder of fiscal year 2026 and avert a partial government shutdown. The legislation, the product of bipartisan negotiations under severe deadline pressure, sets discretionary spending levels and resolves contentious policy disputes that had stalled the process for months. Lawmakers now face a tight timeline to pass the bill before temporary funding expires.

A key breakthrough in the negotiations was the resolution of a major impasse over funding for U.S. Immigration and Customs Enforcement (ICE). The dispute, which centred on immigration detention and enforcement operations, had been a primary obstacle to a final deal. The final bill also incorporates a significant pay provision for federal workers, including a 3.8% pay raise specifically for air traffic controllers. This measure addresses urgent concerns about staffing shortages and retention within the Federal Aviation Administration.

The package rejects several proposed cuts to domestic agencies. Notably, significant reductions sought for the Education Department, including billions in cuts to Title I funding for disadvantaged students and special education programs, were not included in the final legislation. The omnibus bill represents the conclusion of the annual appropriations process, moving away from short-term continuing resolutions to provide full-year funding stability for federal agencies.