Appropriations Update - December 2025

After a few chaotic days, Congress passed a continuing resolution and narrowly averted a government shutdown. In addition to funding the government until March 14, the bill also includes $110 billion for disaster relief for those impacted by natural disasters.

Notably NOT included is disaster relief funding specifically allocated for schools and the critical Secure Rural Schools Reauthorization. AASA is disappointed to see our priorities for the CR were not included in this bill but will continue our advocacy to protect federal investment in education.

So, what’s next for FY25 funding? The new March 14^th deadline will give the incoming Republican-led government the opportunity to fully control topline funding levels for FY25.  But this last CR negotiation process has further illuminated the divisions among the Republican caucus when it comes to the federal budget and the 119^th will have even thinner margins for House Speaker Johnson*. Additionally, according to the Fiscal Responsibility Act (remember that bill from 2023?) if Congress is still under a CR after April 1, there will be an automatic 1% cut to all funding (including defense)– which will put more pressure on Speaker Johnson and incoming Senate Majority Leader John Thune to get their caucuses aligned and pass full FY25 funding.

As for actual funding priorities, we know from the House Republican FY25 proposal that education investment is one of the many areas that leadership will want to cut funding. However, it is important to note that due to the Senate filibuster, any spending proposals must have 60 votes to pass – which means at least 7 Democrats in support.

In addition to FY25 funding, the new Congress will also be focused on other priorities including two reconciliation bills and vetoing regulations from the Biden administration through the Congressional Review Act. Can they successfully juggle all of these with the smallest margins in modern history? TBD.  

*There are now conversations about whether or not Mike Johnson is up to the task of leading the House in the 119^th Congress. Which means a speaker election could be added to the long to-do list at the beginning of next year.