Original Broadcast Date: 03/08/2026
Presented by Rancher Government Solutions
Federal agencies are navigating an increasingly complex budget environment as fiscal year deadlines approach and the next budget cycle begins. Phillip Swagel, Director of the Congressional Budget Office (CBO), explains how overlapping timelines and funding uncertainties are shaping the financial management landscape across government.
Swagel describes the current moment as a complicated period for agencies. Fiscal year 2026 appropriations are still not fully completed, while planning for fiscal year 2027 is already underway.
At the same time, the government is experiencing a partial shutdown affecting the Department of Homeland Security. These overlapping events create additional challenges for agencies trying to track spending and prepare for future budgets.
The federal budget process typically begins each spring when the President releases the administration’s budget proposal. This proposal signals priorities for the coming fiscal year and kicks off the appropriations process on Capitol Hill.
Once the proposal is released, appropriations committees in both the House and Senate begin reviewing funding across the federal government. Each committee works through subcommittees responsible for different areas of government spending.
As part of this process, lawmakers evaluate existing spending levels, consider proposals for new programs, and determine which initiatives should continue or change. Agencies closely monitor these discussions to understand how their programs may be affected.
Swagel explains that agencies must track the appropriations process as it unfolds on Capitol Hill. They watch how committees allocate funding and evaluate potential changes to programs.
One of the major concerns agencies face is uncertainty about future funding levels. Questions often arise about whether a continuing resolution will be required at the start of the fiscal year or whether appropriations bills will be completed on time.
Continuing resolutions allow government operations to continue temporarily when full appropriations have not been approved. However, they can complicate long-term planning because agencies must operate under temporary funding levels.
Despite these challenges, Swagel notes that federal financial management professionals have significant experience dealing with this type of uncertainty. Over time, the possibility of continuing resolutions has become a familiar part of the budgeting landscape.
While short-term funding issues are important, Swagel says agencies must also focus on longer-term priorities. Agencies must evaluate which programs will continue, which may change, and how policy priorities will evolve.
Swagel also addresses a common perception about the President’s budget proposal. Some observers argue that the proposal carries little weight because Congress ultimately determines final funding levels.
However, Swagel says the President’s proposal still plays an important role. It signals the administration’s priorities across domestic programs, national security initiatives, and other policy areas.
Even if specific proposals do not pass in their original form, the priorities outlined in the President’s budget often influence discussions on Capitol Hill. Members of Congress consider those priorities as they develop their own funding decisions.
Inside agencies, career staff and political appointees work together to interpret and implement these priorities. Career civil servants bring extensive institutional knowledge and expertise to the budgeting process.
Swagel notes that the federal workforce responsible for financial management is highly professional and experienced. The individuals working with CBO across agencies are typically long-serving career employees who understand the complexities of government budgeting.
The financial management community also collaborates across agencies to share information and coordinate efforts.
Swagel points to the events of 2025 as an example of the workforce’s resilience. During that period, financial managers had to adapt quickly to changing funding conditions, shutdown threats, and other disruptions.
Despite those challenges, agencies continued executing their missions while adjusting to shifting financial realities.
Looking ahead, Swagel says the biggest challenge for agencies involves balancing immediate operational needs with long-term planning.
Financial managers must ensure that agencies can continue day-to-day operations, including paying employees and managing program spending. At the same time, they must keep sight of long-term priorities and ensure resources are aligned with the administration’s policy goals.
This balancing act requires flexibility and careful coordination across government.
According to Swagel, the federal financial management community has demonstrated its ability to adapt to changing conditions while maintaining critical government operations.
Even in uncertain fiscal environments, these professionals continue supporting agency missions and ensuring that government resources are managed responsibly.