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28 April 2026

The Topline: Steptoe Appropriations Newsletter

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Steptoe LLP

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The Department of Homeland Security enters its 70th day of shutdown as House Republicans refuse to support funding until reconciliation negotiations advance, while DHS Secretary warns the agency will run out of cash by early May. Political maneuvering intensifies as lawmakers debate attaching additional policy priorities to border security legislation, risking President Trump's June 1 deadline...
United States Government, Public Sector
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A Shifting (Home)land-scape. The Department of Homeland Security (DHS) remains shut down, now for its 70th day. Political dynamics on Capitol Hill continue to evolve, and President Trump has stayed largely quiet since his early-April endorsement on Truth Social of a two-track plan: pass an FY26 DHS bill immediately, then address Border Patrol and ICE issues through reconciliation.

House Republicans have said they will not support a DHS funding bill until meaningful progress is made on reconciliation negotiations. The Senate took steps this week to demonstrate that progress by advancing a budget resolution with instructions limited to the Homeland Security and Judiciary Committees. This framework, which the House plans to consider next week, sets the stage for a narrowly scoped reconciliation bill. Still, it remains to be seen whether House Republicans will commit to a vote on DHS funding, even if reconciliation passes.

Meanwhile, House Budget Chair Jodey Arrington (R-TX) and other GOP leaders have floated the idea of attaching additional policy priorities to the ICE and Border Patrol package – a potentially risky move that would require another Senate vote and could jeopardize chances of meeting the President’s self-imposed June 1 deadline for enactment. Although many Republicans view this bill as the last major legislative opportunity before the midterms, House GOP leaders are working to assure members that a third reconciliation bill will follow, offering an additional chance to advance their agenda. A framework for this third bill is reportedly in the works and may be released next week.

Adding to the urgency, DHS Secretary Markwayne Mullin has warned Congress that the agency will run out of cash by early May and will no longer be able to reallocate funds to cover payroll.

Bottom line: the DHS funding situation remains highly fluid with no clear solution in sight.

FY27 Updates. The FY27 budget process is moving at a brisk pace, with appropriators churning through more budget hearings and markups this week. Both the House and Senate held budget hearings with Trump administration officials, while the House also completed several markups at both the subcommittee and full committee levels. The House appropriators also approved the 302(b) allocations for six of the 12 subcommittees.

Next week, the House is scheduled to continue markups and will consider two more bills at the full committee: National Security/State and Agriculture-FDA. Senate Appropriations Chair Susan Collins (R-ME) told reporters she plans to begin markups in June after nearly 40 hearings are completed in April and May. Next week, the Senate will continue with subcommittee hearings featuring the VA Secretary and the Chief of the US Forest Service.

New House Appropriator. Rep. Jefferson Shreve (R-IN) has been appointed by the House Republican Steering Committee to replace Rep. Tony Gonzales (R-TX) on the House Appropriations Committee following Gonzales' resignation announcement last week. A freshman lawmaker, Shreve says his skills align well with the committee’s work and he looks forward to learning from Chairman Tom Cole (R-OK). Rep. Shreve will serve on the Commerce-Justice-Science and Homeland Security subcommittees.

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