Congressional appropriators are one step closer to reaching a comprehensive spending deal for the rest of the fiscal year before a stopgap spending bill expires at the end of the month.

Members of the House and Senate appropriations committees released a four-bill “minibus” of fiscal 2026 spending bills on Tuesday.

Congress is roughly halfway to passing a spending plan for the rest of FY 2026. The current continuing resolution expires on Jan. 30.

The latest “minibus” covers annual appropriations for the departments of Defense, Homeland Security, Labor, Health and Human Services, Education, Transportation and Housing and Urban Development, as well as some smaller related agencies.

House Appropriations Committee Chairman Tom Cole (R-Okla.) said in a statement that the spending package delivers “results without waste.”

“At a time when many believed completing the FY26 process was out of reach, we’ve shown that challenges are opportunities. It’s time to get it across the finish line,” Cole said.

Here are a few highlights from the spending package:

3.8% pay raise for air traffic controllers

The spending deal would give the Federal Aviation Administration a $1.58 billion budget for fiscal 2026, as well as funding to hire 2,500 new air traffic controllers

The FAA is about 3,500 air traffic controllers short of its staffing goals. Many current air traffic controllers are working six days a week, including mandatory overtime.

As part of this budget plan, the FAA would receive $140 million to implement a 3.8% pay raise for air traffic controllers, as well as supervisors and managers who oversee air traffic.

The Trump administration approved a 3.8% pay raise for federal law enforcement personnel, which went into effect at the start of January. Air traffic controllers were not on the Office of Personnel Management’s list of positions receiving a higher pay raise.

The spending bill states that the 3.8% pay raise “shall be implemented for all such employees only to the extent that the administrator determines, in his sole discretion, that improvements in workforce scheduling, staffing utilization, or other operational efficiencies are achieved that contribute to addressing workforce shortfalls and enhancing aviation safety.”

If the FAA administrator determines these conditions, the pay raise would retroactively go into effect for the first pay period in January 2026.

Spending cuts for a smaller federal workforce

Republican appropriators applauded overall spending cuts in the spending bill that funds the Transportation Department, HUD and related agencies.

GOP lawmakers on the House Appropriations Committee wrote that the spending deal “codified DOGE recommendations to reduce the federal bureaucracy” of Transportation, HUD and related agencies by 29%.

More specifically, GOP lawmakers said the spending package reflects a 24% reduction in HUD staffing achieved partially through layoffs last year.

Lawmakers said a smaller HUD workforce will save $348 million in salaries and related expenses.

Republican appropriators said the spending deal reflects the Transportation Department “right-sizing” its workforce through a 5% staffing reduction, “all without compromising transportation safety.”

President Donald Trump told reporters at a White House press briefing on Monday that his administration “slashed tremendous numbers of people off the federal payroll” during his first year in office.

OPM data shows over 300,000 federal employees left government last year. That’s about a net loss of 220,000 employees, when accounting for new hires.

Trump said downsizing the federal workforce was necessary, because “they had 10 people for every job,” and that terminated federal employees have moved on to higher-paying jobs in the private sector.

“I don’t feel badly, because they’re getting private sector jobs, and they’re getting sometimes twice as much money, three times as much money,” Trump said. “They’re getting factory jobs, they’re getting much better jobs and much higher pay.”

Higher HHS spending, proposed cuts rejected

The spending bill gives the Department of Health and Human Services $116.8 billion in discretionary spending — a $210 million increase in discretionary spending. By contrast, the Trump administration proposed a nearly 20% cut to HHS discretionary spending this year.

The congressional spending deal rejects the administration’s calls for deep cuts within HHS. The administration sought a 50% spending cut for the Centers for Disease Control and Prevention. Instead, the compromise reached by lawmakers essentially keeps CDC funded at current levels, and includes funding increases for some of its pandemic preparedness programs.

The spending package would give $7.4 billion to the Substance Abuse and Mental Health Services Administration (SAMHSA) a $65 million increase over current funding levels.

The bigger budget reflects increased spending to address a rise in opioid overdoses, especially from fentanyl, as well as boosts to substance abuse disorder prevention and mental health services.

Lawmakers rejected a 15% cut to SAMHSA funding proposed by the Trump administration. The spending deal also rejects the administration’s plan to reorganize SAMHSA into the Administration for a Healthy America (AHA), a new office envisioned by HHS Secretary Robert F. Kennedy, Jr.

Democrats on the appropriations committees said the spending deal ensures SAMHSA remains its “own, independent agency to help ensure substance use and mental health remain a priority at HHS” and “includes new guardrails to ensure SAMHSA funds are allocated as intended.”

NPR reported last week that HHS briefly terminated $2 billion in addiction and mental health grants, but quickly walked back those cuts.

Education Department budget remains intact

Lawmakers are largely rejecting the administration’s proposal to dismantle the Education Department, and move many of its functions to other federal agencies.

The spending bill gives the department $79 billion in discretionary spending — a roughly flat budget compared to current spending levels.

The Trump administration proposed cutting the Education Department by $12 billion, or about 15% of its current discretionary budget.

The Education Department has already signed six interagency agreements to transfer some of its programs and employees to HHS and the departments of Labor, Interior and State.

Education Secretary Linda McMahon told employees last November that the department is soft-launching plans to reassign its work to other parts of the federal government, before calling on Congress to permanently shutter the agency.

Senate Appropriations Committee Vice President Patty Murray (D-Wash.) said in a statement that “Congress will not abolish the Department of Education, and the people’s representatives will have the final say on how taxpayer dollars get spent.”

Budget boost for Social Security

The Social Security Administration would see a higher budget under this spending plan.

Lawmakers propose giving SSA $15 billion for its administrative budget in fiscal 2026 — a $554 million increase compared to current spending levels.

Lawmakers from both parties agreed that the funding will help the agency improve customer service for the public. Democratic appropriators urged SSA to use these increased funds to resume hiring.

SSA currently has about 50,000 employees in total, according to the latest data from the Office of Personnel Management. The agency lost more than 7,000 employees through voluntary incentives last year. It also relocated many of its employees from its headquarters and regional offices to field offices.

SSA Commissioner Frank Bisignano told staff at an all-hands meeting last week that the agency is continuing to hire, according to several employees in attendance. Those employees, however, said the agency still faces a hiring freeze.

Labor Dept. federal contractor watchdog spared from elimination

The spending bill provides $13.7 billion in discretionary spending to the Labor Department — a slight increase compared to its current $13.5 billion discretionary budget.

The department’s Office of Federal Contract Compliance Programs would receive a $101 million budget, about a 9% cut to current spending levels. OFCCP ensures federal contractors aren’t discriminating against their employees.

OFCCP, however, would remain largely intact, after the Trump administration proposed major staffing cuts. An earlier funding proposal from House Republicans also proposed fully eliminating OFCCP.

The agency sent layoff notices to 90% of its staff, but rescinded those layoffs last August. Instead of being reinstated to their jobs at OFCCP, the agency said impacted employees would be “reassigned to a new position” at the Labor Department.

Small agencies marked for closure stay open

The spending bill also includes funding for small, independent agencies marked for elimination by an executive order last year.

Lawmakers propose giving the Institute of Museum and Library Services a $292 million budget — a $3 million cut compared to current spending levels.  The spending bill also proposes $3 million in funding for the Interagency Council on Homelessness.

President Trump signed an executive order last March, eliminating these agencies and five others “to the maximum extent consistent with applicable law.”

A federal judge in Rhode Island ordered a permanent injunction last November, putting the Trump administration’s plans to shutter these small agencies on hold.

House Appropriations Committee Ranking Member Rosa DeLauro (D-Conn.) said in a statement that the funding package “continues Congress’s forceful rejection of extreme cuts to federal programs proposed by the Trump administration.”

“Where the White House attempted to eliminate entire programs, we chose to increase their funding. Where the administration proposed slashing resources, we chose to sustain funding at current levels,” DeLauro said.

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As a tumultuous year for the federal workforce comes to a close, many employees are in a much different position now than they were at the start of 2025.

The Trump administration’s efforts to reduce staffing across agencies resulted in the loss of more than 317,000 federal employees governmentwide. It’s a 13.7% decrease compared with September 2024 workforce numbers, Office of Personnel Management data shows.

At the same time, 68,000 new federal employees joined the civil service during 2025, according to OPM Director Scott Kupor. Combining both attrition and hiring data, the administration’s changes over the course of 2025 amounted to a net staffing decrease of about 10.8%.

Kupor touted the results as exceeding the administration’s goals, saying relatively few losses were due to reductions in force (RIFs) and firings of probationary employees. Out of all employees who left their jobs in the last year, “over 92% did so voluntarily,” he said, mainly via the deferred resignation program (DRP).

“None of this is to minimize the impact of anyone losing a job, but the ‘mass firing’ headlines do not in fact tell the full story,” Kupor wrote in a Dec. 10 post on X.

But some federal workforce experts argue that the administration’s reductions in 2025 amounted to a “forced exodus.” Max Stier, president and CEO of the Partnership for Public Service, pointed to what he said have become “dangerous gaps” in key federal services, like food safety inspection, Social Security processing, veterans’ healthcare and disaster response.

“This loss of expertise directly harms Americans’ access to critical services and will take decades to repair,” Stier told Federal News Network.

Rep. James Walkinshaw (D-Va.) also pushed back against the idea of the administration’s DRP being “voluntary.” He said many feds who left government felt they had no choice — they felt threatened they would be fired anyway, if they did not leave through the DRP.

“Federal workers were hit with DOGE, watched agencies shutter, were threatened with imminent reductions in force, demagogued and bombarded with those mindless ‘5 things’ emails,” Walkinshaw said Dec. 11. “Nothing about that was voluntary — the ‘fork in the road’ was coercion.”

Still, the workforce cuts so far align with the Trump administration’s overall goal to “downsize the federal workforce,” as the Office of Management and Budget recently laid out in the new President’s Management Agenda. Specifically, the administration said it is targeting cuts of “unnecessary positions” and “poor performers,” while emphasizing more efficiency.

“We’ve seen significant success in right-sizing the federal workforce and addressing performance issues,” Eric Ueland, OMB’s deputy director for management, said during a Dec. 9 Chief Human Capital Officers (CHCO) Council meeting.

The workforce reductions hit some agencies harder than others. The top three agencies facing staffing reductions are the departments of Defense, Agriculture and Treasury — with Treasury’s reductions mostly concentrated within the IRS, according to research from the Partnership for Public Service.

By scale, DoD has seen the largest staffing reduction across government. The department lost over 61,600 employees during 2025 — a total of about 8% of its total workforce.

Following just behind DoD, the Treasury Department lost more than 31,600 employees, yielding a staffing reduction of nearly 28%.

And at USDA, the loss of more than 21,600 employees over the last year amounted to a roughly 22% staffing decrease overall.

But other agencies, such as USAID and the Education Department, saw even deeper cuts to their workforces, despite being smaller agencies by volume.

Governmentwide, the loss of more than 300,000 federal employees has shown up in a multitude of ways. At the IRS, for instance, an agency watchdog warned there will likely be issues with the 2026 tax filing season, as a direct result of the 25% cut to the IRS workforce. And at USDA, the staffing reductions are affecting the work of some of the department’s underlying agencies.

The Partnership for Public Service said the cuts are harming communities as well. An analysis of more than 530 stories on the federal government throughout 2025 shows the impacts of the federal workforce reductions across the country.

“Notably, more than 45% of these stories involve harms to science-related sectors, including agricultural research, healthcare and public land management,” the Partnership said. “Together, they show the direct, tangible consequences these changes are having on individuals, organizations and communities.”

Over the course of 2025, the impacts also continued to spread. In a survey the Partnership conducted in September, 46% of respondents said they or someone they know had been impacted by the government cuts. That’s up from 29% of respondents who said the same in March.

Still, there are many who view the Trump administration’s changes positively. About 80% of those who are supportive of the federal workforce overhauls said they believe the changes will make their communities and lives better, the Partnership’s September survey found. But even among those who were supportive of the changes, 41% still expressed concerns about a loss of experience and knowledge in the federal workforce in the short term.

The changes are impacting many who have stayed in their jobs as well. Federal employees are experiencing disruptions in the workplace at a rate far higher than the national average, according to a recent Gallup survey.

Close to one-third — about 29% — of federal employees say their workplace has been disrupted “to a very large extent.” That’s nearly triple the 10% of U.S. employees who say the same, Gallup found. Across the federal workforce, it’s leading to increases in stress and loneliness, as well as a decline in employee engagement.

Robert Shea, a federal workforce policy expert and former OMB official from the George W. Bush administration, said the workforce changes have had a “chilling effect” on leaders across the career civil service — something he believes will continue into 2026 and beyond.

“Many career officials are now more cautious about how, when and whether they offer professional advice,” Shea told Federal News Network. “That’s particularly when that advice could be perceived as resistance rather than implementation.”

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