Policy Backgrounder Congress Struggleswith DHS Funding andReconciliation Congresshas had difficult negotiations topassfunding for theDepartment of Homeland Security (DHS)to end the partialgovernment shutdownand adopt a budget resolution to guide areconciliation billthat would fund two DHS agencies and possiblyaddress other areas. The President has asked for a reconciliationbill by June 1. Trusted Insights for What’s Ahead® •At the end of March,the White Houseand Congressional Republican leadersagreed to afundingdeal for DHS that would split off immigration and border security operationsto befundedthrough areconciliationbill--which can pass the Senate with only 51 votes ratherthan 60--with the rest of the agency funded through the normal appropriations process. •At the end of April, the Senate passed a budget resolutionthat would fundImmigrationand Customs Enforcement (ICE)andCustoms and Border Protection(CBP)for threeyears (through the end of the President’s term). •After the Administration claimed that its alternative sources of funding for DHS agencieswerescheduled to run out at the start of May, the House ultimately adopted the budgetresolution and passed funding for the rest of DHS until September 30. Republicans willnow turn to crafting and passing a reconciliation bill by the President’s June 1 deadline. •The bill will likely be narrow, missing the opportunity for changes to the tax code thatcould affect business and also avoiding politically difficult votes before the midterms. Senate Passes Budget Resolution In early April,SenateRepublicansproposeda two-track plan for DHS funding:a first track withfunding for most DHS agencies through the standard appropriations process and a second trackwith funding forICE and CBP through a reconciliation bill, which requiresonlya simple majorityto pass in the Senate.However, Congress did not compete the first track before its Easterrecess.1In the meantime, the Presidentsigned anExecutiveOrderto pay all DHS employeesas the shutdown continued through April.2 Senate Republicans alsoturned to draftingabudget resolution toguide thereconciliationprocess.The White House agreedto keep thebill narrow in scope,simply funding ICE and CBPfor three years.3The Senators alsodid not commit to offsetting the cost of the bill, arguing thatthisfunding wouldnormallygo through the standard appropriations process. Thebudget resolutionultimately adopteddirects theHomeland Security and JudiciaryCommittees in the House and Senate to allocate up to $70 billion over 10 years forICE andCBP.4After a“vote-a-rama” of potential amendments, including some on cost-of-living issuesdesigned to force politically difficult votes, it passed50-48, with two Republicans voting no.5 House Struggles toAdopt Resolution and DHS Funding Many HouseRepublicans initially reacted negatively to the two-track plan, with some favoringall DHS funding through reconciliation andadding other legislative priorities to thesecondreconciliation bill.6Somecentrist House GOP Membershad concerns about setting a precedentof using reconciliation to fund agencies that would normally go through the appropriationsprocess.7These tensions led to delays in the House moving forward.8 Towards the end of April, the White House warned that DHS agencieswouldrun out ofcontingency fundingat the beginning of May, ratcheting up pressure on the House.9The firststep for the House was passing a rule to bring the budget resolution for a vote on the Housefloor. House Republicans on the Rules Committeestruggled to fight off dozens of amendmentsfrom Democrats intended to secure defections from disgruntled Republicans.10The rule passedthe Committeeby a vote of9-411and the full House216-210on April 29.12 Later that day, the full Houseproceeded to vote on the budget resolution itself. The vote washeld open for five hoursas Republican leadershipdealtwithobjections tounrelatedspy powerand agriculturelegislation, demonstrating the general struggles facing the House Republicanconferenceto pass legislation under such narrow margins.13After resolving these disputes,House Republicans passed the budget resolution by a party-line vote of 215-211.14Withreconciliation moving forward, the House then adopted the DHS FY2026 appropriations billbyvoice vote on April 30, ending the longest partial shutdown of the Federal government in UShistory.15Despite the end of the shutdown, there may still be lingering effects to airport securityscreening and disaster response efforts this Summerfromdisruptions to standardDHSplanning and operationsduring the 76-day shutdown.16 Towards Reconciliation With passage of the budget resolution,Congressional Republicansarenow proceedingwithdrafting the second reconciliationbillof the President’s term. This week, the Senate Committeeson the Judiciary and Homeland Security & Government Affairs releasedbill text of their portionsof the reconciliation bill, totaling over $70 billion. The Homeland Security text includes$19.1bill