Audio Briefs What a Government Shutdown Would Mean for Defense Funding in FY 2026
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Sep 30, 2025 In this discussion, Seamus P. Daniels, a Senior Analyst at CSIS specializing in defense budgets, delves into the looming risks of a government shutdown and its implications for FY 2026 defense funding. He outlines key questions framing the impact of appropriations issues and reviews the administration's hefty defense budget request. Listeners learn which Department of Defense operations may continue during a shutdown, how personnel pay would be affected, and lessons learned from past shutdowns, making this an insightful analysis for anyone following military funding.
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FY2026 Defense Top Line And Reconciliation
- The FY2026 defense top-line request is $892.6 billion, matching FY2025 enacted discretionary defense spending.
- The administration also plans to use $119.3 billion in reconciliation funds but has not given Congress an implementation plan.
Political Gridlock Drives CR Uncertainty
- Progress on a continuing resolution stalled over disputes about attaching health and tax-credit provisions.
- The House passed a CR that omitted tax credits but the Senate blocked it, increasing shutdown risk.
Accepted Activities Keep Key Missions Running
- During a shutdown, DOD keeps essential missions but ceases activities funded by lapsed appropriations unless designated accepted.
- DOD guidance lists priorities and allows some functions to continue using unobligated balances and accepted activity determinations.