Federal Budget Outlook Ahead of September Update

American flag waves before U.S. Capitol’s ornate facade with tall columns, arched windows, and partly cloudy sky

September 26, 2025

Federal Budget Outlook Ahead of September 30

Congress will return to Washington, D.C., on September 29 with just one day left to fund the federal government before the start of fiscal year 2026 on October 1. While the House passed a short-term continuing resolution (CR) earlier this month, the Senate has not acted, and negotiations remain at a standstill. A CR temporarily extends current funding levels to keep the government open while lawmakers continue work on longer-term bills.

In preparation for a potential government shutdown, the White House recently directed federal agencies to prepare for possible layoffs.  Essential services such as Social Security, Medicare, veterans’ benefits, law enforcement, and air traffic control would continue. However, many federal workers and agencies could see disruptions if funding lapses. At the same time, significant differences remain over how long a CR should last. The House-passed measure extends funding until November 21.

The White House has proposed a four-month extension to January 2026. Many appropriators in both parties continue to push for a shorter CR of about 45 days to maintain urgency in completing the 12 annual appropriations bills. Some members are also pressing for a longer CR that would carry through the entire fiscal year, which would avoid shutdowns but freeze funding at fiscal year 2025 levels.

Nominee Developments

      • Sara Carter, nominee for Director of the Office of National Drug Control Policy (ONDCP), appeared before the Senate Judiciary Committee on September 17. During the hearing, she outlined her priorities for addressing drug trafficking, the opioid epidemic, and improving coordination with law enforcement agencies. The Judiciary Committee must vote on whether to favorably report her nomination before it can move to the full Senate for final consideration.
      • Jonathan Morrison of California has been confirmed by the Senate as Administrator of the National Highway Traffic Safety Administration (NHTSA). His nomination was approved on September 18 by a 51–47 vote. Mr. Morrison’s nomination was endorsed by the IACP.
      • Sean McMaster of Michigan has been confirmed by the Senate to be the Federal Highway Administrator (FHWA) His nomination was approved on September 18 by a 51–47 vote. IACP attended both the Morrison and McMaster swearing in ceremonies.

House Hearing Highlights Rising Threats from Drones

On September 16, the House Subcommittee on Crime and Federal Government Surveillance held a hearing titled Unmanned and Unchecked Confronting the Rising Threat of Malicious Drone Use in America. Witnesses included Tonya Coultas, Acting Associate Administrator for Security and Hazardous Materials Safety at the Federal Aviation Administration, Cathy Lanier, Senior Vice President and Chief Security Officer for the National Football League, Charles Cohen, former Indiana State Police officer and national expert on drone use in criminal activity, and Charles Firth, Senior Director of Business Development at Dedrone.

Testimonies focused on how drones are being exploited for criminal purposes, including smuggling contraband into prisons, surveillance, and drug trafficking activities along the U.S. border. Members and witnesses discussed challenges such as gaps in legal authority for state and local agencies, risks to aviation safety, and vulnerabilities tied to foreign manufactured drones. They also considered potential policy and technology solutions.

Proposed policy and technology solutions mentioned during the hearing included expanding legal authority for state and local law enforcement to detect and, when necessary, mitigate rogue drones, developing standardized training and certification programs, investing in scalable counter-drone technologies, improving interagency coordination, and strengthening public-private partnerships to test and deploy drone detection systems. To watch a recording on the hearing, click here.


Engagement

IACP attend the Inaugural Meeting of FBI Director Patel’s Law Enforcement Partner Engagement Council (LEPEC).  This was the first LEPEC meeting. The next meeting will occur at the IACP Annual Conference & Exposition in Denver, Colorado.

This week, IACP met with Speaker Johnson’s office to discuss a potential crime bill. The conversation focused on what such a bill could look like and the provisions it might include. IACP emphasized our commitment to ensuring that federal policy supports the policing profession.


Past legislative Updates