The Federal Budget Process - Alternative & Reform

In the last post (October 21), Cogport reviewed the current state of the current Broken Budget Process.

We encourage you to read that report for background information.

This post will focus on what can be done in the short term and structural reforms for the long term.

Current Situation

The Government is shutdown due to lack of a Final Appropriations Bill for the 2026 budget for the Fiscal Year that began October 1.

Continuing Resolutions have been shut down by Democrats who seek to use the CR process to increase spending with bills to increase the budget up to $ 1.5 Trillion.  The demand is primarily for healthcare subsidies (which may include support for illegal immigrants).

The CR process is not the appropriate place for such a demand which would increase the Federal Budget by approximately 20%.  This debate belongs to the resolution of a Final Appropriations Bill which is overdue and still in reconciliation. That is what budget negotiations are for.

Today, a new CR simply proposed continuation of pay for the Military and Essential Workers who are still on the job.  It was blocked by Democrats – government employees will not be paid while the party holds out for its demands.  This strategy is up for the People to evaluate – it may not help Democrats.

What Next

Going on 4 Weeks of Shutdown, both Parties have dug into their positions.

A negotiated CR seems unlikely for the time being.

Democrats have prevented the CR’s from coming to the Senate floor for a vote by exercise of the Cloture Rule (covered in previous post).

The Republicans who control the Senate do have an alternative referred to as the Nuclear Option.

The reason it’s called the Nuclear Option is because it detonates a major Senate norm — the right of the minority to filibuster legislation.

Here is how the Nuclear Option would work:

The Senate Majority Leader (Senator Thune) would appeal to the Senate arguing that a simple majority should be able to end debate on a “budgetary” or “continuing resolution” bill.  That would be a significant change in the Senate Rules.

Oddly enough, this Rule change can be approved by a simple majority of 51 Votes. 

Cloture does not apply to a vote for change in Senate Rules.

Once Cloture is removed, the CR can go the Senate floor for a vote, again by simple majority of 51 Votes.

Comment

The Cloture Rule is not part of the Constitution.  It was self-imposed by the Senate in 1871 and has endured ever since.  It has been a barrier to passage of legislation by a simple democratic majority and should be abolished. 

It is an artifact of history without good purpose.  The House of Representatives does not have such a thing.

Reform

A Constitutional Amendment would be required to prevent future Government Shutdowns.

Here are the basic elements of an Amendment:

• Congress retains the power to authorize Federal Spending (Separation of Power from the President).

• The President is required to submit an annual Budget Appropriations Bill to the House by the first Tuesday of April each year.

• Congress shall pass a Final Appropriations Bill before October 1 prior to the start of the new Fiscal Year.

• If Congress fails to pass a Bill by October 1, the President shall have authority to continue spending at the budget level approved in the prior year.  No shutdown shall be permitted.

In an era of dysfunction in Congress, it is unlikely a Constitutional Amendment could be passed.  It would require a two-thirds vote in both the House and Senate, and then go the States requiring approval of 38 to ratify.

The political courage and skill do not seem available to enable such action at the present.

David Hollaender                                             October 23, 2025

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