Federal Funding Outlook Following the End of the Government Shutdown

Night view of illuminated U.S. Capitol with dome reflection in water, framed by trees and lights under a clear blue sky, symbolizing governance.

November 21, 2025

Government Reopens Under a Continuing Resolution

Congress ended the 43-day government shutdown by passing a Continuing Resolution (CR) that funds federal agencies at FY 2025 levels through January 30, 2026. The package also included full-year FY 2026 funding for three of the twelve appropriations bills: Agriculture, Legislative Branch, and Military Construction–VA. All remaining agencies, including the Department of Justice and the Department of Homeland Security, are operating under temporary funding. The short-term nature of the CR sets up another funding deadline less than two months away for Congress to complete the nine outstanding bills.

What Reopening Means for Federal Agencies

Although the shutdown has ended, federal operations will not immediately return to pre-shutdown conditions. Agencies face significant backlogs, and some administrative functions may be slow to resume. Grant processing and program administration could experience delays as agencies work through backlogged work.

Appropriations Leaders Begin Work on Remaining FY 2026 Bills

With the government now reopened, the “four corners” of the Appropriations Committees are meeting this week for the first time since the shutdown began. Their discussions will focus on topline spending levels, which remain unresolved and continue to be the largest barrier to completing the FY 2026 appropriations process. The Senate has not yet released four of its bills, including Financial Services and Homeland Security. Without agreement on spending caps and bill text, negotiations will remain delayed, creating uncertainty for grant programs that state, local, and tribal law enforcement agencies depend on.

Senate Minibus Stalls Amid Internal Negotiations

Before the recess, Senate leadership had hoped to consider a large spending package combining the Defense, Labor-HHS-Education, and potentially the Commerce-Justice-Science bills. Progress has stalled as several senators are concerned about combining multiple bills into a single package. These disagreements are slowing the path to finalizing funding for critical policing programs.

NDAA Negotiators Move Toward Final Agreement

In parallel with the appropriations work, negotiators for the FY 2026 National Defense Authorization Act reported they are close to finalizing a conference agreement. Both chambers aim to release their final text by the end of the week, with a floor vote expected in early December. While the NDAA is separate from appropriations, its final provisions may influence broader federal policy debates and priorities that affect policing programs.

The IACP Issues Call to Action to Oppose H.R. 38 —Legislation would impose personal liability on officers, undermining state and local control

Leadership from the U.S. House of Representatives has announced that consideration of H.R. 38, the Concealed Carry Reciprocity Act of 2025, is a priority. The IACP and the National Fraternal Order of Police (FOP) have serious concerns about the impact this legislation would have on officer safety, officer liability, qualified immunity, and state and local gun safety laws.

Given the serious implications for policing, IACP members must act now to voice their concerns and prevent passage of this legislation that compromises officer safety and state authority.

The IACP and FOP have sent a joint letter to Congress, and the IACP strongly urges our members to

    • Contact your U.S. Representative today. Simply click here, enter your information, and the system will automatically identify your representative and senators. A pre-drafted template letter will populate for you to submit.
    • Express your opposition to H.R. 38 and its dangerous implications for law enforcement and public safety.
    • Share this message with fellow law enforcement professionals and community stakeholders.

Overview of the Legislation and Key Concerns 

H.R. 38, the Concealed Carry Reciprocity Act of 2025, would require all states to allow individuals to carry concealed firearms if they are either licensed by their home state or legally entitled to carry there, even if that state imposes no permitting, training, or background check requirements. This effectively forces states with rigorous safeguards to accept the least restrictive standards in the nation.

In addition, the legislation increases legal exposure for police officers. The bill includes provisions that allow individuals to sue law enforcement officers and agencies for detentions or arrests related to concealed carry, even if the officer acted in good faith. This opens officers to civil liability and damages, including attorney’s fees, for enforcement actions that may later be deemed improper.

Background

Many states already recognize concealed carry permits from jurisdictions with comparable requirements, such as live training and enhanced background checks. These agreements respect state sovereignty and public safety without federal overreach. H.R. 38 would override these tailored arrangements and impose a one-size-fits-all approach based on the lowest common denominator.

While the IACP supports the Second Amendment and respects the rights of responsible gun ownership, the specific provisions of H.R. 38 present serious concerns for the policing community. The bill’s creation of personal liability for officers, combined with its erosion of state and local authority to regulate firearms, threatens officer safety and exposes agencies to costly litigation.

In particular, the provisions of H.R. 38 would

    • Undermine State Sovereignty: The bill strips states of their ability to set and enforce their own standards for concealed carry, including age limits, training requirements, and background checks.
    • Create Enforcement Challenges: Officers would be expected to interpret and apply laws from all 50 states in real time, without reliable means to verify an individual’s eligibility to carry concealed weapons, especially those from permitless carry states where no physical permit exists. This leaves law enforcement unable to confirm lawful possession during encounters, creating confusion and heightened risk in high-stakes situations.
    • Increase Legal Exposure for Officers: The bill includes provisions that allow individuals to sue police officers and agencies for detentions or arrests related to concealed carry, even if the officer acted in good faith. This opens officers to civil liability and damages, including attorney’s fees, for enforcement actions that may later be deemed improper.
    • Compromise Officer and Public Safety: The inability to confirm whether someone is lawfully carrying a concealed firearm increases the risk of armed encounters and reduces situational awareness for officers in the field.
    • Erode Federal and Local Protections: R. 38 would also allow concealed carry in sensitive areas such as school zones and federally managed lands, potentially conflicting with existing safety protocols and increasing risks in vulnerable environments.

Community Oriented Policing Service (COPS) Awards

The U.S. Department of Justice COPS office has now announced all 2025 awards and all agencies have been notified. View those awards here.

Outlook for the Weeks Ahead

The CR has provided lawmakers with temporary breathing room, but it has also created a condensed funding timeline. Congress now faces a narrow window to finalize the remaining appropriations bills and avoid another shutdown at the end of January.

The IACP will continue to monitor all developments closely and provide updates as Congress works toward a full-year funding agreement.


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.

Robert Cekada, nominee for Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), was formally nominated to the Senate on November 18 and referred to the Senate Judiciary Committee. His nomination will be reviewed by the Judiciary Committee, which must vote on whether to favorably report it before the full Senate can consider confirmation.

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