NEWS | Congress Faces Steep Climb on Government Funding as Shutdown Risks Linger, Posing Further Harm to Small Business

No matter how short or record-breaking, shutdowns always harm small business - get up to speed on the latest government funding plan from Capitol Hill and Washington with this week's episode of Hardwired.

ANALYSIS | The House funding impasse highlights ongoing instability in the appropriations process, increasing the likelihood of short-term extensions or a prolonged shutdown that would disrupt federal agencies and inject further uncertainty into the small business economy. For small businesses, continued budget brinkmanship threatens delays in contracting, lending, and permitting, underscoring the need for timely, durable funding agreements.

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FEB. 02, 2026 | House Republican leaders face a difficult path this week as they attempt to pass a revamped government funding package negotiated in the Senate, raising the prospect that a partial government shutdown could drag on. Speaker Mike Johnson is aiming to move five full-year appropriations bills alongside a short, two-week stopgap for the Department of Homeland Security (DHS), but the strategy hinges on unifying Republicans amid internal divisions and limited Democratic support.

RELATED | NSBA Survey Data Shows Small Business Owners Affected by Record-Breaking Shutdown

Democrats appear split on the package. While many House Democrats have voiced opposition, arguing the agreement was largely shaped by Senate Democrats and the White House, some senior members have signaled openness to supporting it. Still, Minority Leader Hakeem Jeffries has made clear he will not provide the votes needed to fast-track the legislation, leaving House Republicans to resolve their own disagreements before advancing the measure procedurally.

Within the GOP, resistance remains strong among conservative members who are pushing to attach additional policy provisions, including legislation related to noncitizen voting, or who favor a longer DHS stopgap instead of the two-week extension. Those disagreements complicate leadership’s efforts to pass the funding package on a party-line basis.

Looking ahead, prospects for a broader, full-year DHS funding deal appear even more uncertain. Disputes over immigration enforcement policies and oversight requirements remain unresolved, and Senate leaders have cautioned that completing a comprehensive agreement in such a short timeframe is unlikely. As a result, lawmakers may be forced into a series of short-term extensions, prolonging uncertainty for federal agencies, contractors, and small businesses that rely on predictable government operations.

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Clear as mud? Make sense of the circus that is Washington funding debates with this week's episode of Hardwired - plugged-in segments on small-business policy direct from Capitol Hill and the Administration, hosted by NSBA's own Director of Government Affairs Jack Furth: