The Approps Drop

With the House finally beginning to break its floor paralysis, appropriations may be back in motion. However, the path to funding the government for FY27, and keeping the lights on past September 30, remains complex. Last week, the House passed the National Security, Department of State, and Related Programs (NSRP) appropriations bill, which included a closely watched vote on Rep. Thomas Massie's amendment targeting aid to Israel. House Republicans also renewed efforts to advance a potential reconciliation 3.0 package, while House Republicans will bring a continuing resolution (CR) funding the government through December 4th this week. Across the Capitol, the Senate remains largely frozen on appropriations, with no markups scheduled and no spending bills released for consideration, though a timely budget justification hearing is on the docket.

The Trump administration’s Fiscal Year (FY) 2027 defense budget request represents a historic high watermark and a significant increase from the FY 2026 defense funding level enacted into law—both in raw dollars and in structure. Clients with defense equities should understand both the numbers and the funding mechanics, both of which carry significant implications for authorization (National Defense Authorization Act (NDAA)), appropriations (discretionary federal funding) and the potential for a defense reconciliation process (mandatory spending).