- Trump’s
Tariff Threats on European Allies: President Donald Trump announced 10%
tariffs on exports from eight European countries—Denmark, Norway, Sweden,
France, Germany, UK, Netherlands, and Finland—starting February 1, 2026,
escalating to 25% on June 1, unless they support his plan to acquire Greenland. - Greenland
Acquisition Context: The tariffs target nations deploying military
personnel to Greenland, a Danish territory Trump claims is vital for US
national security; he stated the US has sought it for 150 years. - European
Response and Unity: EU held an emergency meeting; leaders like UK’s Keir
Starmer called it “completely wrong,” while Ursula von der Leyen
pledged a “united and proportional” reply, considering the
Anti-Coercion Instrument (“trade bazooka”) against US goods. - Potential
Retaliation Measures: EU eyes tariffs on €93 billion of US imports,
restrictions on American firms’ market access, and higher funding costs;
French President Macron urged activation, amid threats of 200% US tariffs
on French wine. - Broader
Implications: Reactions strain NATO ties, with Dutch FM labeling it
“blackmail”; Trump linked it to Norway’s Nobel snub and revived
historical US purchase attempts, prompting EU investment pledges in
Greenland.
Washington (Washington Insider Megazines) January 20,
2026 – The US Congress has advanced a government funding bill to avert a
federal shutdown. Lawmakers from both parties reached a tentative agreement on
spending levels after weeks of negotiations. The measure now heads to floor
votes in both chambers before the funding deadline.
The US Congress has taken a critical step towards avoiding a
federal government shutdown by advancing a bipartisan funding bill. Lawmakers
from both parties announced a tentative agreement on spending levels following
weeks of intense negotiations. This measure, which combines a continuing
resolution with full-year appropriations for select agencies, now proceeds to
floor votes in the House and Senate ahead of the impending funding deadline on
January 30, 2026.
Details of the agreement emerged from bipartisan talks led
by House and Senate appropriations committees. The package addresses funding
for multiple federal departments and includes extensions for key programmes.
Reports from congressional sources indicate the bill maintains operations across
government agencies at fiscal year 2025 levels through the deadline.
House Speaker Mike Johnson stated intentions to bring the
package to a vote this week. The proposal represents the first significant
advancement in government funding negotiations since the previous shutdown
concluded last November. Bipartisan support has been essential in bridging
partisan divides on spending priorities.
Background on Recent Shutdown and Prior Funding Measures
Credit: Reuters
The current push follows the end of a record 43-day
government shutdown that began in early October 2025. That shutdown, the
longest in US history, stemmed from disagreements over fiscal year 2026
appropriations. Congress resolved it on November 12, 2025, when President Trump
signed a measure comprising a continuing resolution and three full-year
appropriations bills.
The November package provided full-year funding for
Agriculture-FDA, Legislative Branch, and Military Construction-Veterans
Affairs. It extended funding for remaining agencies through January 30, 2026,
at FY 2025 levels. The Senate had advanced the bill on November 9 with a 60-40
vote, followed by House approval of 222-209.
Key provisions in that earlier measure included retroactive
pay for furloughed federal employees, rescission of layoff notices, and
prohibitions on further reductions in force. It also allocated $7.3 billion for
the Legislative Branch, with $2.1 billion for House operations and $1.5 billion
for the Senate, while freezing congressional cost-of-living adjustments.
Agricultural extensions covered Farm Bill programmes through
September 30, 2026, maintaining core USDA authorities. Health extenders funded
community health centres, National Health Service Corps, and Medicare
flexibilities through January 30.
Recent Appropriations Progress in January 2026
In early January 2026, House and Senate appropriations
committees agreed on a bipartisan package for Commerce, Justice, Science, and
Related Agencies; Energy and Water Development; and Interior, Environment, and
Related Agencies. The House passed H.R. 6938 on January 8 by a vote of 397-28.
The Senate followed on January 15 with an 82-15 vote, sending the measure to
President Trump for signature.
Another package covered national security, Department of
State, financial services, and general government funding. The House approved
H.R. 7006 on January 14 by 341-79. These bills form part of the broader effort
to complete FY 2026 appropriations and avoid another shutdown.
The House Appropriations Committee released text for these
packages on January 4, marking steady progress. Full-year bills included $203.5
million for congressional security and $852 million for US Capitol Police. The
continuing resolution ensures rehiring of laid-off federal workers with backpay
and bars mass layoffs during its term.
Key Provisions in the Advanced Funding Bill
Credit: discoveryalert.com.au
The latest advanced bill extends government funding at FY
2025 levels through January 30, 2026. It restores operations for all federal
agencies and addresses critical priorities through limited anomalies, including
support for the US Marshals Service, Supreme Court security, disaster relief,
wildfire management, and cybersecurity.
Specific funding allocations cover agricultural programmes
like ACEP at $625 million for FY2026, rising to $700 million by FY2029-2031;
EQIP at $2.655 billion for FY2026; and CSP at $1.300 billion for FY2026. These
levels support ongoing farm and conservation efforts.
Health-related extenders include community health centres,
teaching health centre graduate medical education, Medicare telehealth
flexibilities, rural hospital add-ons, and disproportionate share hospital
relief. The package reauthorises the Over-the-Counter Monograph User Fee
Program through FY2030 and allocates $14 million for No Surprises Act
implementation.
Legislative Branch funding totals $7.3 billion, sustaining
Congress and related agencies. Military Construction-VA maintains Department of
Veterans Affairs research at $945 million, matching FY2025 levels.
Legislative Path and Floor Votes Ahead
The measure requires passage in both chambers before
President Trump’s signature. House Republicans have described it as a
“clean funding extension” following prior disruptions. Democrats on
the Appropriations Committee highlighted the release of
Commerce-Justice-Science and related bills as a step forward.
The Senate’s procedural advancement in November set a
precedent, with similar votes expected now. Bipartisan negotiations have
focused on avoiding repeats of the 41-day shutdown that impacted federal
operations nationwide.
As floor votes approach, congressional leaders emphasise the
urgency ahead of January 30. The package combines immediate continuing funding
with targeted full-year bills, aiming to stabilise government functions.
Timeline of FY2026 Appropriations Efforts
Efforts to
finalise FY2026 funding began amid the prior shutdown. House Republicans
passed an initial extension in September 2025, though delays persisted. The
November resolution provided temporary relief while committees worked on
remaining bills.
January developments accelerated with House passage of key
packages. The Senate’s strong support for Commerce-Justice-Science and others
signals momentum. Outstanding bills include Labor-HHS-Education and others due
by the deadline.
This ongoing process reflects standard appropriations
cycles, where continuing resolutions bridge gaps until full-year measures pass.
The current bill’s advancement underscores bipartisan commitment to
uninterrupted services.
