United Way of Greater Knoxville: January 2026 Budget Update
As 2026 begins, Congress has not yet passed a full federal budget for the year. Right now, the government is running on temporary funding, which keeps programs at last year’s levels. This temporary funding is set to expire around March 15, 2026. By then, Congress must pass a full budget, approve another temporary extension, or risk a government shutdown.
For nonprofits and community programs, this creates uncertainty. Federal agencies are moving carefully, slowing grant timelines, delaying funding announcements, and avoiding long-term commitments. The main issue right now is delayed decisions, not cuts to funding.
At the state level, the Tennessee General Assembly started its session on January 13, 2026. Lawmakers will focus on the state budget, including priorities like education, workforce development, and other key programs. State decisions will also depend on how federal funding is handled in the spring.
What this means for our community:
United Way of Greater Knoxville is closely tracking both federal and state budgets. We will keep our partners, donors, and local organizations informed as important decisions are made, so together we can continue supporting programs that strengthen our community.
