Congress Passes Second Reconciliation Bill to Fund ICE and CBP

Action: Congress used reconciliation to pass funding for Immigration and Customs Enforcement (ICE) and Customs and Border Patrol (CBP) through the end of the President’s term. This also completed the appropriations process for fiscal year (FY) 2026.

Trusted Insights for What’s Ahead^®

• In May, Congressional Republicans agreed to a budget resolution to guide reconciliation and released bill text providing over $70 billion in funding for ICE and CBP until the end of FY2029. Senate Republicans hesitated to vote on the bill ahead of the Memorial Day recess due to concerns surrounding $1 billion in funding for the White House ballroom project and the Justice Department’s announcement of a $1.8 billion “anti-weaponization” fund.¹
• On June 5, the Senate passed the reconciliation bill by a 52-47 vote.² Before the final vote, Republican Senators stripped the White House ballroom funding from the bill and held over 18 hours of amendment votes. After the Justice Department stated the “anti-weaponization” fund would not proceed, attempts to put guardrails or eliminate the fund failed to reach the 60-vote threshold to advance despite some vulnerable Republican Senators joining Democrats in support.
• The House quickly turned to considering the reconciliation bill, which met some opposition from conservatives who wanted to codify stricter immigration and border enforcement policies.³ House Republican leadership eventually convinced the holdouts by promising a vote on immigration legislation, clearing the way for the bill to pass on June 9 by a 214-212 vote.⁴
• What this means for business: These legislative developments mean the appropriations process for FY2026 is complete. ICE and CBP are also fully funded through September 30, 2029; funding for these agencies should be less of a political issue for the rest of the President’s term.
  • The FY2027 appropriations process now begins in earnest. Senate appropriators remain at odds over the topline totals for defense and non-defense discretionary spending and lawmakers are preparing their campaigns for the midterm elections in November, suggesting a high likelihood of a continuing resolution or government shutdown as the September 30 deadline to finish the appropriations process approaches.⁵
  • Congress cannot pass another reconciliation bill until the new fiscal year begins October 1. In anticipation of the midterms, some Congressional Republicans are also eyeing a third reconciliation bill to advance their legislative priorities, including increased defense spending, initiatives to combat fraud, and cost-of-living measures.⁶ Republicans remain divided on the prospects of uniting their caucus behind one bill. At least two Republican Senators have stated another reconciliation bill is unlikely.

Endnotes