On July 21, the House of Representatives passed a continuing resolution (H.R. 9770) that would fund all government agencies through December 4, 2026, and avert a lapse in funding at the end of Fiscal Year 2026. The Senate has agreed in principle to an expanded CR that would run through December 11, however uncertainty remains on its path forward. A vote could come as soon as today. These measures would fund all government agencies beyond the beginning of Fiscal Year 2027 (October 1) and the midterm elections scheduled for November 3.

Both the House and Senate are now in their traditional August recess. The House is scheduled to meet again on August 31, while the Senate plans to return on September 11. Both chambers of Congress will be in recess through October, giving members an opportunity to stay in their states and districts to campaign.

While the deal provides a measure of comfort and certainty averting another devastating shutdown, CRs still leave managers without the ability to plan ahead, meaning that large amounts of money cannot be used for bulk purchasing or other productive ways of using funds.

With regard to regular order for Fiscal Year 2027 appropriations, the House Appropriations Committee has passed all twelve funding bills for Fiscal Year 2027, and the full House of Representatives has passed two of the 12 funding bills (Agriculture and Military Construction/VA).

Following committee passage of Defense appropriations, House Appropriations Committee Chairman Tom Cole (R-OK) said, "Reporting all 12 of our FY27 bills out of full committee is proof that regular order still works when Congress commits itself to the task. Our dedicated cardinals and members have engaged, deliberated, and delivered on behalf of their constituents and the nation. They've balanced priorities, exercised careful stewardship, and advanced legislation that strengthens U.S. security, prosperity, and [the] future.”

The Senate Appropriations Committee has delayed consideration of FY27 funding bills several times this summer. However, staff work has continued on the Senate bills, and the subcommittee products are considered nearly complete. For example, Senate Appropriations Interior-Environment Chair Lisa Murkowski (R-AK) recently said the funding bill is “ready to go whenever the chairman tells us it’s time to go.” Others have cited significant progress and “basic agreement with Democrats.”

FMA will continue to monitor developments on funding for Fiscal Year 2027.