US Congress Returns to Tackle Record Defense Budget and DHS Funding Crisis

Key Facts

1Congress faces a partial shutdown of the Department of Homeland Security (DHS) that has lasted 58 days.

2Section 702 of the Foreign Intelligence Surveillance Act (FISA) is set to expire on April 20.

3The White House requested a $1.5 trillion budget for the Pentagon, the largest military budget ever requested.

The US Congress is returning from recess to address a heavy legislative agenda, including a partial shutdown of the Department of Homeland Security (DHS) that has persisted for 58 days. Lawmakers are also racing against an April 20 deadline to reauthorize Section 702 of the Foreign Intelligence Surveillance Act (FISA). A central point of contention remains the White House's request for a record-breaking $1.5 trillion Pentagon budget, the largest military request in history. Deep partisan divisions over immigration reforms and voting eligibility laws continue to stall funding progress and legislative stability. The outcome of these debates is expected to impact defense sector stocks such as Lockheed Martin (LMT) and General Dynamics (GD). Furthermore, the ongoing fiscal uncertainty could trigger volatility in the US Dollar and Treasury yields as markets monitor the potential for prolonged gridlock.