Senate Passes Continuing Appropriations and Extensions Act, 2026, Reopening Government After 41-Day Shutdown and Funding Key Agencies; Rejects Healthcare Tax Credit Extension and Upholds New Hemp Regulations
The Senate convened to address the 41-day government shutdown, ultimately passing H.R. 5371, the "Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026." This legislation reopens the government until January 30, 2026, and provides full-year appropriations for Agriculture, Legislative Branch, and Military Construction-Veterans Affairs. The passage followed a series of votes, including the rejection of amendments aimed at extending Affordable Care Act (ACA) tax credits and banning presidential pocket rescissions, and the upholding of new regulations on hemp-derived products.
This chamber-day is highly significant as it marks the end of the longest government shutdown in American history, restoring funding for critical federal operations and ensuring federal workers receive backpay. It also advances three full-year appropriations bills, providing stability for vital programs like SNAP, WIC, and veterans' care. However, the failure to extend ACA tax credits means millions of Americans will face significant increases in healthcare premiums, setting the stage for future legislative battles on healthcare affordability.
Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026
H.R. 5371, as amended by S. 3937Question before the chamber
Passage of H.R. 5371, as amended, which reopens the government until January 30, 2026, and provides full-year appropriations for Agriculture, Legislative Branch, and Military Construction-Veterans Affairs.
The case for
Senator Thune emphasized that the bill represents the first step to reopen the government after 41 days, with a final package including a clean continuing resolution until January 30 and three bipartisan full-year appropriations bills. He highlighted that yearlong funding for SNAP, WIC, veterans, essential farm programs, and other critical priorities would be met. Senator Barrasso reiterated that the bill is simple, clean, and bipartisan, funding the government through January and including full-year appropriations for veterans' care and food assistance. Senator Collins stressed the urgency of ending the unnecessary shutdown, ensuring backpay for federal employees, and providing yearlong funding for VA and military construction, especially ahead of Veterans Day.
The case against
Senator Schumer criticized the bill for failing to address America's healthcare crisis, specifically the impending skyrocketing premiums due to the non-extension of ACA tax credits. He accused Donald Trump of cruelty for the shutdown and for appealing to the Supreme Court to withhold SNAP benefits. Senator Murray also stated her opposition to the overall deal due to the lack of action on healthcare costs, arguing that Republicans refused to negotiate on saving ACA tax credits. Senators Baldwin, Sanders, and Slotkin echoed these concerns, highlighting the severe financial impact on millions of Americans if the tax credits expire and criticizing Republicans for not offering a plan to fix the healthcare system.
Disposition
Passed · recorded vote
The bill, as amended, was passed by the Senate.
60-40
Who is affected
- Federal employees: Will receive backpay and be recalled to work, ending financial hardship caused by the shutdown.
- SNAP and WIC recipients: Will receive full nutrition benefits due to full-year funding in the Agriculture appropriations bill.
- Veterans and military personnel: Will have their care and military construction projects fully funded for the year.
- American public: Government services will resume, and air travel disruptions due to understaffing will be alleviated.
- ACA enrollees (22 million Americans): Will face dramatic increases in healthcare premiums due to the non-extension of tax credits, potentially leading to loss of coverage or significant financial strain.
- Hemp industry and farmers: Will be subject to new, stricter regulations on THC content in hemp-derived products, potentially impacting the viability of many existing products and livelihoods.
Hemp Definition Modification
Section 781 of Division B of H.R. 5371, as amendedQuestion before the chamber
Adoption of Senator Paul's amendment (S.A. 3941) to strike Section 781, which modifies the definition of hemp and introduces new regulations.
The case for
Senator Paul argued that Section 781 would "destroy hemp farming in Kentucky and across the United States" by imposing a per-serving THC content limit of 0.4 milligrams, which would make nearly 100 percent of the existing market illegal. He stated it would effectively preempt and nullify all State laws concerning hemp and require the destruction of current hemp plants and seeds. Senator Merkley added that the language would wipe out 95 to 99 percent of the industry, including legal CBD products, which are FDA-approved for treating seizures.
The case against
Senator McConnell stated that the language addresses a serious concern regarding the manufacturing and selling of unregulated, intoxicating THC products, particularly those marketed to children in candylike packaging. He asserted that the provision clarifies the original intent of the 2018 farm bill, aiming to root out bad actors while preserving the hemp industry for industrial applications and CBD used in drug trials.
Disposition
Motion to table agreed to · recorded vote
Senator Paul's amendment to strike the hemp definition modification was tabled, meaning the new hemp regulations remain in the bill.
76-24
Who is affected
- Hemp farmers and the hemp industry: Will face significant new restrictions and potential market disruption due to stricter THC limits and changes to the definition of hemp.
- Consumers of hemp-derived products (e.g., CBD): May lose access to a wide range of currently available products due to the new regulations.
- Children: The regulations are intended to protect children from intoxicating THC products marketed in appealing packaging.
- State regulatory frameworks: Existing state laws on hemp, which often have higher THC limits, will be effectively preempted by the federal changes.
Extension of Affordable Care Act Tax Credits
S.A. 3950 (Baldwin amendment)Question before the chamber
Motion to table Senator Baldwin's amendment (S.A. 3950) to extend ACA tax credits for one year.
The case for
Senator Baldwin argued that the amendment was necessary to prevent healthcare premiums from doubling for over 20 million Americans, citing constituents facing increases of thousands or tens of thousands of dollars. She stated that the tax credits are a "lifeline" and that addressing this crisis demands immediate action. Senator Sanders emphasized the "outrageous increase" in premiums, with some Vermonters facing tripling or quadrupling of costs, and called for a debate on healthcare affordability. Senator Slotkin stated that the healthcare crisis was precipitated by Republicans and that a clean 1-year extension is the least that can be done to prevent people's health insurance from going up by 600 percent.
The case against
No direct opposition to the Baldwin amendment was aired in the Record during the debate on the motion to table. However, Republican Senators, including Senator McConnell and Senator Collins, had previously indicated a desire for broader ACA reform and a cap on income for tax credit eligibility, suggesting a preference against a 'clean' extension without such reforms.
Disposition
Motion to table failed · recorded vote
The motion to table Senator Baldwin's amendment failed, meaning the amendment was not tabled. However, the subsequent adoption of the Collins substitute effectively bypassed a direct vote on the Baldwin amendment.
47-53
Who is affected
- 22 million Americans relying on ACA tax credits: Will face significant increases in healthcare premiums, potentially leading to loss of coverage or severe financial strain, as the tax credits are set to expire.
- Middle-class families and rural residents: Are particularly vulnerable to these premium hikes, with some facing thousands or tens of thousands of dollars in additional annual costs.
- Hospitals and healthcare systems: May be impacted by reduced coverage and increased uncompensated care if more people lose insurance.
Prohibition on Last-Minute Rescissions
S.A. 3948 (Merkley amendment)Question before the chamber
Motion to table Senator Merkley's amendment (S.A. 3948) to prohibit presidential pocket rescissions.
The case for
Senator Merkley argued that the ability of the President to effectively cancel funding for programs without an affirmative vote from Congress, by submitting a rescission proposal within 45 days of the fiscal year end, is an "outright violation of the power of the purse assigned in the Constitution to Congress." He stated that it represents an "authoritarian killing programs" and undermines democracy, urging members to defend their constitutional power.
The case against
No opposition to the Merkley amendment was aired in the Record during the debate on the motion to table.
Disposition
Motion to table failed · recorded vote
The motion to table Senator Merkley's amendment failed, meaning the amendment was not tabled. However, the subsequent adoption of the Collins substitute effectively bypassed a direct vote on the Merkley amendment.
47-53
Who is affected
- Congress: Its constitutional power of the purse is at stake, as presidential pocket rescissions allow the executive to unilaterally defund programs without legislative approval.
- Federal programs and their beneficiaries: Programs could be abruptly unfunded if a President uses this mechanism, leading to instability and disruption of services.
Government Shutdown Ends with Passage of Continuing Appropriations Act
highAfter 41 days, the Senate passed H.R. 5371, the "Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026," by a vote of 60-40. This bill reopens the government until January 30, 2026, and includes full-year funding for three appropriations bills, ensuring federal operations resume and employees receive backpay.
Three Full-Year Appropriations Bills Enacted
highThe passed legislation incorporates three full-year appropriations bills for fiscal year 2026: Agriculture, Rural Development, Food and Drug Administration, and Related Agency; Legislative Branch; and Military Construction, Veterans Affairs, and Related Agencies. These bills provide stable funding for essential programs including SNAP, WIC, veterans' healthcare, and military construction projects.
Effort to Extend ACA Tax Credits Fails
highA motion to table an amendment by Senator Baldwin, which sought a clean one-year extension of Affordable Care Act (ACA) tax credits to prevent skyrocketing premiums for over 20 million Americans, failed by a vote of 47-53. This outcome means the ACA tax credits will expire, leading to substantial premium increases for many families.
New Hemp Industry Regulations Upheld
highAn amendment by Senator Paul to strike a provision modifying the definition of hemp in the Agriculture appropriations bill was tabled by a vote of 76-24. This action upholds new regulations that will significantly restrict the hemp industry by setting a very low THC content limit for hemp-derived cannabinoid products, which opponents argued would effectively ban nearly all existing products.
Attempt to Ban Presidential Pocket Rescissions Fails
mediumA motion to table an amendment by Senator Merkley, which aimed to prohibit presidential pocket rescissions (the ability of the President to effectively cancel funding for programs without congressional approval if the request is made within 45 days of the fiscal year end), failed by a vote of 47-53. While not tabled, the amendment was ultimately bypassed by the final vote on the substitute bill.