- 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.