Story perspectives

Congress Reaches $1.2 Trillion Deal to Avoid Shutdown

1/21/2026

Summary

Story summary

Congress announced a bipartisan agreement on January 20, 2026 to prevent a government shutdown.
The agreement includes four funding bills totaling $1.2 trillion.
The package will fund Defense, Homeland Security, Labor, Health and Human Services, Housing and Urban Development, Transportation, and Education.
The funding represents a significant portion of the federal budget managed by Congress.

History

Historical Context

The Bipartisan Budget Act of 2013, signed by President Obama on December 26, aimed to mitigate the effects of sequestration by restoring $63 billion in funding over two years. This agreement, forged by Representative Paul Ryan and Senator Patty Murray, exemplified the ongoing struggle in Congress to balance fiscal responsibility with essential services. A similar bipartisan effort in 2026 seeks to avert a government shutdown through substantial funding bills.

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Story summary

Congress announced a bipartisan agreement on January 20, 2026 to prevent a government shutdown.
The agreement includes four funding bills totaling $1.2 trillion.
The package will fund Defense, Homeland Security, Labor, Health and Human Services, Housing and Urban Development, Transportation, and Education.
The funding represents a significant portion of the federal budget managed by Congress.

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