In a bold move ahead of next year's elections, the Swedish government unveiled an 87 billion kronor ($8.5 billion) spending package aimed at stimulating economic growth through tax reductions, increased defense allocations, and support for households and businesses. The budget, presented by Finance Minister Elisabeth Svantesson, reflects a strategic pivot to address slowing growth and geopolitical tensions, drawing on fiscal surpluses to fund the initiatives without new borrowing. This election-year bonanza is expected to influence voter sentiment amid rising concerns over inflation and security.

The U.S. Senate on September 20, 2025, rejected both a Republican-proposed stopgap funding bill and a Democratic alternative, escalating the chances of a partial government shutdown starting October 1. The House-passed measure aimed to extend funding through November 21, while the competing proposal sought a shorter extension to October 31 with additional provisions. With lawmakers departing for a break and no resolution in sight, partisan divisions over spending and policy riders continue to stall progress ahead of the September 30 fiscal deadline.