Congress could be set to take a major step forward to a return to regular order — crafting annual budgets on the schedule required by the 1974 Budget Reform Act — thanks to an agreement reached by House Appropriations Committee Chairman Tom Cole (R-Okla.) and Senate Appropriations Committee Chairman Susan Collins (R-Maine).

The agreement covers the eight remaining major appropriations bills that Congress must complete and send to President Donald Trump for his signature in order to fund the federal government’s 2026 fiscal year. “This agreement reflects a shared commitment to governing responsibly, advancing a transparent and deliberate process, and providing the certainty needed to continue moving full-year funding bills through Congress,” according to a December 20 statement issued by the House panel.

The 1974 law requires Congress to adopt a first concurrent budget resolution no later than April 15 that sets spending and revenue targets for the upcoming fiscal year. Then, congressional committees are required to complete drafting 12 major appropriation bills by June 10, and by June 30, the full Senate and House have approved the measures. A second concurrent budget resolution that reflects the numbers in the approved bills is due by September 15, and all actions are to be finalized by September 30, which is the last day of the expiring fiscal year.

But Congress has only fully complied with the 1974 law four times in the decades since, including the years 1977, 1989, 1995, and 1995. In every other year, Congress has had to adopt massive continuing resolutions (CRs) that lump most or all of the appropriations into one bill that senators and representatives can only vote up or down.

Cole, who became chairman of the House panel in April 2024, following the retirement of Rep. Kay Granger (R-Texas), expressed confidence that the full appropriations process will be completed before the January 30, 2026 deadline established by the CR Congress adopted to end the government shutdown that began October 1 and continued for 43 days.

“This agreement provides a strong fiscal framework to complete FY26 and reflects our commitment to governing with clarity, effectiveness, and purpose. With fiscal responsibility guiding our work, we are advancing the appropriations process in a way that saves American taxpayer dollars. Our total funding allocation will be below the funding level projected in the continuing resolution for FY26, set to expire on January 30,” Cole said in the statement.

“This pathway forward aligns with President Trump’s clear direction to rein in runaway, beltway-driven spending. We will now begin expeditiously drafting the remaining nine full-year bills to ensure we are ready to complete our work in January.

“Our process will remain member-driven and transparent. Bills will be released with time for review, advanced in packages, and deliver on clear priorities for the American people. The nation deserves stability and a government that works for them,” the Oklahoma Republican continued.

“Completing the FY26 process through full-year appropriations will enact America First priorities, replace Biden-era policies, and eliminate the risk of yet another Democrat-manufactured shutdown in January. President Trump has already signed three full-year bills into law, demonstrating what responsible governance can deliver, and we intend to help him finish the job,” he said.

The eight outstanding spending bills include the Commerce-Justice-Science, Energy and Water Development, Financial Services and General Government, Homeland Security, Interior and Environment, Labor-Helath and Human Services-Education, State-Foreign Operations-Related Programs, and Transportation-Housing and Urban Development.

The four measures Congress has previously approved that Trump signed into law include Defense, Military Construction, Agriculture, and Veterans Affairs.