Disclaimer: This primer reflects the budget process status as of early 2025. For the most current updates on appropriations, reconciliation, and legislative developments, please consult official Congressional websites, trusted news sources, and the Politico FY25 budget reconciliation update.

Fiscal Year 2025 appropriations (Oct. 1, 2024–Sept. 30, 2025)

The 118th Congress did not pass a final FY25 State/Foreign Operations (SFOPS) Appropriation bill before the fiscal year began.

• The Biden Administration requested $64 billion for SFOPS in FY25, including $45.6 billion for foreign operations.
• The House approved $53.1 billion for SFOPS on June 28, 2024 (H.R. 8771), with $38 billion for foreign operations; however, the Senate never took up this bill.
• The Senate Appropriations Committee reported a bill on July 25, 2024 (S. 4797) providing $62.4 billion for SFOPS, including $44.8 billion for foreign operations, but the full Senate did not vote on it.

To keep the government funded:

• On Sept. 26, 2024, Congress enacted P.L. 118-83, a continuing resolution (CR) funding federal agencies through December 20, 2024, largely at FY24 levels ($56.2 billion for SFOPS excluding emergencies).
• On December 21, 2024, the President signed P.L. 118-158, extending funding through March 14, 2025.
• The Senate and House passed a further CR on March 14 and March 11, 2025, respectively, funding the government through Sept. 30, 2025, which the President has signed into law.

Fiscal Year 2025 Budget Resolution (Oct. 1, 2024–Sept. 30, 2025)

The budget resolution sets the congressional spending framework but is not law and does not require presidential approval. It enables budget reconciliation, which can bypass Senate filibusters.

• The FY25 budget resolution was delayed, expected by April 15, 2024, but was considered mid-year to enable reconciliation.
• The Senate passed its FY25 budget resolution (S. Con. Res. 7) on Feb. 21, 2025, by a 52-48 vote, with all Democrats plus Sen. Rand Paul (R-Ky.) voting no. It allocates $61.7 billion in new budget authority for the International Affairs (Function 150) category.
• The House passed its FY25 budget resolution (H. Con. Res. 14) on Feb. 25, 2025, by a 217-215 vote, with all Democrats plus Rep. Thomas Massie (R-Ky.) voting no. It allocates $64.3 billion for International Affairs.
• Both chambers’ leaders are negotiating whether to amend or conference on the budget resolution, aiming to finalize it by April 11, 2025, before the Easter recess.

FY25 Budget Reconciliation and Rescissions

• A budget resolution is required to initiate reconciliation, allowing Republicans to enact tax and spending priorities with a simple majority, avoiding filibusters.
• The reconciliation bill is expected to reduce international affairs spending (Function 150) by approximately $1.7 billion to $4.25 billion below current CR levels.
• Rescissions, or the cancellation of previously allocated funds, are also anticipated as part of efforts to reduce federal spending, potentially targeting foreign assistance accounts. These rescissions would effectively claw back funds from prior appropriations, adding further pressure on international affairs budgets.
• House Republicans favor a single comprehensive reconciliation bill, while Senate Republicans prefer separate bills for FY25 and FY26.
• Speaker Johnson and Majority Leader Thune seek to include a debt ceiling increase in the reconciliation package to prevent a default expected by May 2025. A standalone debt ceiling bill could become a point of contention.

Political Context

• It is unlikely that Democrats will support the FY25 budget resolution, limiting bipartisan leverage on foreign assistance funding.
• The evolving budget negotiations and potential rescissions will critically shape U.S. foreign assistance and related programs in FY25 and beyond.
  

For detailed reporting on the latest developments, see: Politico March 25, 2025 Update