Key takeaways:

• Congress must pass a spending measure by October 1 to avoid a shutdown.
• Lawmakers now rely on short-term fixes called continuing resolutions.
• The president can veto any budget plan or force spending cuts later.
• This year’s fight centers on new “rescission” powers that let the president undo spending.
• Deep party divides and narrow margins in Congress make deals harder than ever.

2025 Budget Fight Explained

Congress faces a firm deadline of October 1. If it fails to agree, federal agencies will halt nonessential work. First, lawmakers want a full annual budget. Yet for decades, they have used continuing resolutions instead of passing real budgets. Now, a new tool called rescissions has stirred fresh tension. In this 2025 budget fight, the stakes are high and time is short.

How We Got Here

Decades ago, Congress often passed full budgets on time. However, rising polarization changed that. Now, both parties struggle to compromise on spending priorities. As a result, short-term funding extensions—continuing resolutions—have become the norm. Furthermore, narrow party margins in both chambers mean neither side holds a clear majority. That makes every vote critical.

What Is a Continuing Resolution?

A continuing resolution, or CR, simply keeps funding at current levels. It buys lawmakers more time to negotiate a full budget. Yet repeated CRs can stall new projects or reforms. They often extend current spending for just a few weeks or months. Consequently, government planning suffers. Agencies can’t launch new programs or hire staff with confidence.

The President’s Role

The president holds veto power over any budget bill. Therefore, Congress must factor in the president’s priorities. In this 2025 budget fight, Republicans control both Congress and the White House. That alignment simplifies some parts of the process. However, President Trump can still reject any plan he dislikes. If Congress disagrees, it must muster two-thirds majorities to override a veto. That hurdle remains nearly impossible in today’s divided Senate.

Why Parties Are at Odds

First, party polarization has grown stronger over the past thirty years. Republicans and Democrats now stand farther apart on policy and spending. Second, close margins in Congress force each party to protect its gains. In the Senate, a 60-vote threshold to end debate adds another barrier. Therefore, Republicans need Democratic support to pass most spending bills. Yet Democrats feel shut out of talks, making bipartisan deals tough to achieve.

What’s New in the 2025 Budget Fight

Despite familiar partisan battles, this year brings a game changer: rescission powers. Rescissions let the president ask Congress to cancel already approved spending. Recently, Trump used this tool to cut public broadcasting and foreign aid projects. Because rescissions need only a simple majority in the Senate, they bypass the 60-vote rule. This move surprised many members of Congress and upset Democrats.

Rescissions: A Powerful New Lever

Rescission authority dates back to the 1970s. Yet presidents rarely used it until now. Trump’s willingness to wield rescissions has reshaped the 2025 budget fight. Democrats now worry any funding they agree to could vanish later. Thus they hesitate to negotiate in good faith. Meanwhile, Republican members face pressure from their voters and the president. If they refuse to support rescissions, they risk primary challenges or backlash at home.

How Rescissions Threaten Congress’s Power

The U.S. Constitution grants Congress the “power of the purse.” This means only Congress can decide how much to spend. Rescissions shift some of that power to the president. If used widely, rescissions could undermine Congress’s main leverage over spending. Thus lawmakers may lose control over federal programs. As a result, future budgets might look more like presidential wish lists than congressional compromises.

Possible Paths Forward

First, Congress could pass a long-term budget before October 1. That outcome remains unlikely given current divisions. Second, lawmakers may approve another short CR to buy more time. Yet repeated CRs deepen uncertainty across federal agencies. Third, Republicans and Democrats could strike a deal on rescissions. For instance, they might agree to limit rescissions to certain programs. However, trust is low, and negotiations have stalled.

Why Time Is Short and Pressure High

With just days until the deadline, each side must decide its next move. Republicans in the House have rallied around a stopgap bill. They hope to secure Trump’s support and avoid a shutdown. Yet Senate Democrats object, demanding a seat at the table and guarantees against rescissions. If no compromise emerges, a shutdown could cripple federal operations and harm public services.

What Happens if Congress Fails?

A government shutdown forces nonessential employees to stay home. National parks and museums may close. Federal contractors could lose paychecks. Essential services like air traffic control and law enforcement would continue, but stress levels would spike. Moreover, shutdowns damage public trust in government. They also cost billions in lost productivity and delayed projects.

Looking Ahead

Beyond October 1, this 2025 budget fight sets a tone for future fights. If rescissions become the norm, presidents will gain more control over spending. Conversely, if Congress pushes back, it might reclaim its constitutional power of the purse. Either way, lawmakers must decide how much leverage they will cede. As negotiations continue, the country watches closely and waits to see if a shutdown can be avoided.

Frequently Asked Questions

Why has Congress stopped passing full budgets?

Growing polarization and narrow majorities have made consensus harder. Instead, lawmakers rely on short-term funding extensions.

What is a continuing resolution?

A continuing resolution maintains current spending levels temporarily. It gives Congress extra time to craft a full budget without shutting down the government.

How do rescissions change the budget process?

Rescissions let the president cancel previously approved spending with a simple Senate majority. This tool can undermine Congress’s spending power.

Can a shutdown be avoided before October 1?

Congress can pass a continuing resolution or a full budget. Success depends on bipartisan agreement and the president’s approval.

What role do Senate filibusters play?

A filibuster requires 60 votes to end debate. It forces bipartisan support for most spending bills, making deals tougher in a divided Senate.