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18 March 2026

The Topline: Steptoe Appropriations Newsletter | March 13, 2026

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Steptoe LLP

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In more than 100 years of practice, Steptoe has earned an international reputation for vigorous representation of clients before governmental agencies, successful advocacy in litigation and arbitration, and creative and practical advice in structuring business transactions. Steptoe has more than 500 lawyers and professional staff across the US, Europe and Asia.
We're now another week into the fiscal year (FY) 2027 request process, but our report looks much like last week: appropriations are moving ahead at full speed...
United States Government, Public Sector
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FY 2027 Appropriations Deadlines Closing Fast. We're now another week into the fiscal year (FY) 2027 request process, but our report looks much like last week: appropriations are moving ahead at full speed, portal activity is buzzing, and committee deadlines are closing fast for member requests. Most House appropriations subcommittees wrap up submissions this week or next, and most member portals are already shut. On the Senate side, committee deadlines have still not been announced, and individual senators' portals show a patchwork of timelines: some have not posted any forms at all (including senators who sit on the Appropriations Committee), while others' deadlines have already passed.

The absence of committee guidance in the Senate does not mean the process will be slow. Senate appropriators are expected to follow closely behind the House on hearings and markups. On that note, reporters at CQ Roll Call obtained an unofficial House markup schedule yesterday. While not yet published by the committee, it outlines markups starting in mid-April and concluding by mid-June, starting with Military Construction-VA and the Financial Services bills and ending with the more complicated measures like funding for the Department of Homeland Security (DHS). This is in line with House Appropriations Committee Chairman Tom Cole's goal of completing markups by the July 4 recess. The Office of Management and Budget's FY27 budget request is still expected to be released during the week of March 30.

Continued DHS Standoff. Funding negotiations for DHS remain stalled despite some floor activity in the Senate this week. Senate Democrats brought to the floor on Thursday several standalone measures to fund only select DHS agencies, including the Transportation Safety Administration (TSA), the Federal Emergency Management Agency (FEMA), the Coast Guard, and the Cybersecurity and Infrastructure Security Agency. Democrats stated these bills were intended to keep security, emergency response, and transportation functions operating while lawmakers continued to debate funding for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). Republicans blocked each measure, arguing that funding only parts of DHS would undermine border enforcement.

The Senate then moved to a vote on a full DHS funding bill. Democrats opposed the measure, citing concerns over immigration enforcement provisions and a lack of compromise on policy changes they view as necessary. The result was another failed attempt to break the impasse, leaving DHS shut down with no clear resolution in sight.

For now, there is little political pressure to resolve the shutdown. Many constituents are not directly feeling its effects, aside from some longer-than-normal airport wait times caused by TSA staffing constraints. Other essential operations, such as FEMA's disaster response capabilities and the Coast Guard's maritime security efforts, have continued at reduced capacity but without widespread disruption. Further, the White House announced this week that Global Entry, the fast-track security screening for international travelers, will reopen after DHS initially suspended the service amid the funding lapse.

Both parties are acutely aware that no one wants to be seen as withholding funding for key security agencies, particularly with heightened security risks and severe weather outbreaks. However, the absence of immediate public pressure has slowed momentum toward a deal, and without a significant shift in negotiations, the DHS shutdown is likely to continue into the coming weeks.

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