Congress enters the third day of its lame-duck session on Wednesday with the same crowded agenda it returned to on Monday: a government funding deadline on December 11, leadership races now largely settled, and a debt limit decision that cannot wait much longer. Republicans still control both chambers until the new Congress is sworn in on January 3, but Democrats won both chambers in the November 3 midterms and will take the gavels in the new year.
Current federal funding runs out on December 11. Without another deal, Congress risks plunging the government into another shutdown, and no agreement has been reached so far. The most discussed option is a short-term continuing resolution that funds the government through January or February, when Democrats can write their own bill, according to reports of the talks. Appropriations bills need bipartisan majorities because of the Senate’s 60-vote filibuster threshold.
The debt limit cannot wait
The federal debt hit 40 trillion dollars for the first time in September, bumping up against the 41.1 trillion dollar ceiling written into the Republican Party’s 2025 budget reconciliation law. The Bipartisan Policy Center said the Treasury is likely to hit its maximum borrowing capacity by mid-summer, and Bank of America estimates the United States may no longer be able to meet all its obligations by November 2027.
Some Democrats have signalled they could use President Donald Trump’s war in Iran as leverage in spending talks, which could lead to a fiscal cliff that paralyses federal agencies, according to reports. One House Republican told reporters they expect another short-term extension of current funding levels through February or March of next year.
What else is on the list
Beyond funding, lawmakers must pass the National Defense Authorization Act, which the House passed in July authorising more than 1 trillion dollars in defence spending. The farm bill, passed every five years and setting food and agriculture policy, is also due. The defence bill is complicated by the failed impeachment vote against Defence Secretary Pete Hegseth on Monday and by the war in Iran.
Senator Patty Murray of Washington, the presumptive chair of the Appropriations Committee in the new Congress, has made clear Democrats are unlikely to negotiate a full year of government funding before the new Congress is sworn in. The session is expected to last roughly four to five weeks, and incoming members began orientation this week.
Related reading: Congress Lame-Duck Day Two: Leadership Vote and December 11.
