WASHINGTON, D.C. — Leaders in the U.S. Senate have reached a bipartisan agreement on a short-term spending package intended to keep the federal government operating while lawmakers continue negotiating a broader budget framework.

The proposal would extend government funding through December 11, giving Congress additional time to negotiate long-term appropriations while avoiding the disruption of a federal shutdown during the height of the 2026 election campaign season.

Unlike previous last-minute budget negotiations, Senate leaders finalized the agreement well before the fiscal deadline, signaling an effort to reduce uncertainty for federal agencies, government employees and financial markets. The measure largely maintains existing funding levels while postponing several contentious policy disputes until later budget negotiations.

The bipartisan compromise follows weeks of negotiations between senior lawmakers from both parties. While the agreement avoids immediate fiscal disruption, major disagreements remain over future defense spending, domestic program funding and broader federal budget priorities.

Political analysts say the legislation represents a significant test of bipartisan cooperation in a highly polarized Congress. If approved by both chambers, the measure would provide temporary stability while lawmakers continue debating longer-term fiscal policy.

Federal agencies have welcomed progress toward avoiding a shutdown, noting that uninterrupted funding helps maintain essential public services, supports government operations and provides greater certainty for contractors and state partners.

The agreement is expected to receive Senate consideration before lawmakers begin their August recess. House leaders will then determine whether to advance the measure, making the coming days a crucial period for federal budget negotiations.

Although the short-term bill does not resolve every spending dispute, it significantly reduces the immediate risk of a government shutdown and sets the stage for more comprehensive fiscal negotiations later this year.