But the biggest battle lies ahead with DHS funding after ICE shooting.
After a lackluster 2025 and the record-breaking 43-day government shutdown, the House kicked off 2026 by passing a roughly $174 billion funding package of three bills ahead of the January 30 deadline to avoid another government shutdown.
The package to fund the departments of Commerce, Justice, Interior, and Energy passed 397 to 28 in a show of broad bipartisan support just one day after the more conservative wing of the Republican Party threatened to vote against advancing the measure. Twenty-two Republicans and six Democrats voted against the final package, which now heads to the Senate.
Full Year Funding Moves Ahead
The opposition reportedly came over the inclusion of a $1 million earmark requested by Rep. Ilhan Omar (D-MN) for the “Somali-run” Generation Hope’s Justice Empowerment Initiative, on the heels of a massive fraudulent scheme using taxpayer funds being exposed in Minnesota’s Somali community. Rep. Chip Roy (R-TX) took credit on X for his efforts to strip the bill of that earmark.
“With one of the biggest fraud scandals in American history happening in real time involving Minnesota Governor Tim Walz and Attorney General Keith Ellison – we should turn the spigot off and prosecute anyone who violated the law, not give them more money,” Rep. Roy wrote. “We should end the earmark game in Washington that serves as the currency of corruption. We are drowning in debt as a nation, and we are funding the social welfare state we complain about being rampant with fraud. How about we stop that? Novel idea.”
House Appropriations Committee Chair Tom Cole (R-OK) praised the thoughtful process of turning President Donald Trump’s America First priorities into action. The funding level in the final package is more than the steep cuts President Trump wanted but less than Joe Biden’s 2024 spending levels and still received White House support. “We prioritize public safety by supporting law enforcement and stopping the flow of fentanyl into our communities,” Rep. Cole wrote. “We advance American strength by unleashing energy dominance, securing critical minerals, and investing in nuclear power. And we uphold stewardship by protecting public lands, supporting wildland firefighters, and ensuring responsible resource management. All of this is achieved while cutting waste and keeping total FY26 spending below the current continuing resolution.”
House Clears ACA, but the Biggest Battle Is Still Ahead
In a vote of 230 to 196, lawmakers also passed a bill to extend the Affordable Care Act subsidies for another three years after they expired at the end of 2025. Seventeen Republicans joined 213 Democrats to pass the extension of the COVID-era enhanced tax subsidies. Lawmakers’ divisive language was reminiscent of the fight over the subsidies during the shutdown last fall. Rep. Aaron Bean (R-FL) litigated the promises of what became known as Obamacare: “I’ve also got a news flash for you, Mr. Speaker, COVID is over. We made these premium tax credits during COVID. COVID’s over, and these subsidies should be over with it. But Obamacare will continue for those who need it.”
Republican lawmakers face a bigger battle ahead in passing the remaining full-year funding, including six bills the House has not yet advanced. Defense and Labor-HHS-Education are among them. The political climate surrounding the Department of Homeland Security portion of funding – in light of Wednesday’s shooting of a protestor in Minneapolis by an ICE agent – could be problematic for Republicans.
But with three appropriations bills already signed into law in November plus Thursday’s momentum, lawmakers on both sides of the aisle expressed optimism they would be able to pass legislation to fully fund the government before the January 30 deadline.
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