If a budget deal is struck, that outline could clear the way for the House and Senate to flesh out the details of fiscal 2018 spending through a giant trillion-dollar omnibus bill.

Budget caps are just the first of many problems Congress faces in January.

Surveillance Law

Both Republicans and Democrats are deeply divided over the government’s warrant-less electronic surveillance law, Section 702 of the Foreign Intelligence Surveillance Act, or FISA. A compromise attempt between Republican libertarians and security hawks was pulled from consideration this week. Instead, a short-term extension of the authority, to Jan. 19, was put into the funding bill.

In the Democratic ranks, lawmakers face increasing pressure to force a showdown on the dreamers, who had been protected under an Obama administration program called Deferred Action for Childhood Arrivals, or DACA. 

In September, Trump revoked the order and some of the undocumented immigrants say they are already losing protected status, along with their jobs.

Senator Jeff Flake, an Arizona Republican, has secured a commitment from Majority Leader Mitch McConnell to put any deal on the issue on the Senate floor in January.

A deal could involve expanded border security spending. Sticking points remain on Trump’s demand for a border wall, for more deportation agents and for changes that would end the ability of immigrants to bring family members to the U.S.

Battle Ahead

"The battle’s going to come in January," Ralph Norman, a Republican from South Carolina, said in an interview after the House approved the temporary funding. "One of the reasons I voted for this now is I didn’t want DACA thrown in."