Congress freezes its own raises, pays death gratuities in spending bill

What it does

This is a continuing appropriations bill that funds federal government operations through December 11, 2026, at fiscal year 2026 spending levels. It extends dozens of expiring federal programs (agriculture, defense, transportation, disaster relief, etc.) and includes specific carve-outs for military shipbuilding cost overruns, Indian Health Service facilities, housing assistance, and other targeted activities. The bill also freezes congressional cost-of-living adjustments and makes death gratuity payments to the families of two deceased members of Congress.

Why we flagged it

The bill's primary function is routine continuing appropriations (extending FY2026 spending authority through mid-December 2026), but it includes specific carve-outs for military shipbuilding, housing programs, and death gratuities that are substantively distinct from the core appropriations mechanism.

• Section 145 appropriates $174,000 each to widow of Rep. David A. Scott and heir of Sen. Lindsey O. Graham—unrelated to continuing appropriations.
• Section 144 freezes cost-of-living adjustments for sitting members of Congress during the period covered by the act—unrelated to agency operations.

What the text implies

• Section 126 carves out $2.8 billion in military shipbuilding cost overruns (prior-year programs) despite section 102's prohibition on new production—creates precedent for excepting defense from spending caps.
• Section 157 blocks finalization of Uniform Guidance (federal financial assistance rules) through Dec 11, 2026—delays compliance burden on federal grantees and contractors, potentially affecting audit and cost-accounting standards.
• Section 153 allows HUD to raid unobligated balances from prior years to prevent rental assistance terminations—transfers funds from other housing programs to emergency rental vouchers without explicit new appropriation.
• Section 156 repeals prior-year Flex Sub loan restrictions and appropriates $6.3M to pay off loans for non-profit housing with specific REAC scores—targeted subsidy to properties meeting narrow criteria.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Citizens benefit from continued government operations and extended social programs (WIC, disaster relief, Indian Health Services), but the bill includes a congressional death gratuity (section 145) that is a narrow private benefit to two families, and the freeze on congressional COLA is a cost to sitting members (not a public benefit). The core appropriations function is routine and necessary; the riders are modest but present.

Who stands to gain

• defense contractors (shipbuilding cost overruns)
• non-profit housing providers (Flex Sub loan payoff)
• federal grantees and contractors (Uniform Guidance delay)

Named in the bill

Department of Defense, Department of Health and Human Services, Department of Housing and Urban Development, Department of Agriculture, Department of Transportation, Department of Energy, Department of the Interior, Small Business Administration, Federal Emergency Management Agency, Office of Management and Budget, Congress, Indian Health Service

Where it stands

1 cosponsor: 1 Republicans.

• Dec 9, 2025 — Introduced · Congress.gov: “Introduced in House”
• Dec 9, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
• Dec 10, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Dec 10, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 37 - 3”
• Jan 12, 2026 — Passed the House · Congress.gov: “On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required)…”
• Jan 12, 2026 — Floor vote scheduled · Congress.gov: “Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended”
• Aug 8, 2026 — Passed both chambers · Congress.gov: “Passed Senate with an amendment and an amendment to the Title by Yea-Nay Vote. 90 - 6. Record Vote Number: 228”
• Sep 2, 2026 — Signed into law · Congress.gov: “Became Public Law No: 119-103”
• Sep 2, 2026 — Sent to president · Congress.gov: “Presented to President”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

9 lobbying clients named this bill on 15 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $63,122,373 in lobbying spend. A filing names 15 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 89% of bills with at least one filing.

Jason Smith, the sponsor, reported $2,951,280 in PAC receipts in the 2026 cycle. $4,500 of that came from 2 PACs tied to these lobbying clients.

• Chamber of Commerce of the U.S.A. — $54,660,000 on 3 filings
• National Retail Federation — $3,881,000 on 2 filings
• Fedex Corporation — $2,930,000 on 1 filing
• Coalition for a Prosperous America — $600,000 on 2 filings
• Cintas — $540,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.