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What is a Continuing Resolution?

by | Jan 3, 2024 | National News

Congress is required to pass spending bills (12 of them for governmental agencies like the Defense Department) by September 30th each year for the following fiscal year that begins on October 1st. But for the past 27 years, Congress has fallen short of meeting that deadline. When they fall short, they pass something called a continuing resolution, or CR for short, to avoid a government shutdown and furloughs and to be able to pay employees and vendors. Some years have required multiple CRs to fund the government before regular appropriations were passed and signed into law.

 

But what exactly is a continuing resolution? Think of it as a temporary loan against a future commitment to receive money. Continuing resolutions are temporary spending bills that allow federal government operations to continue when final appropriations (money) have not been approved by Congress and the President. Without final appropriations or a continuing resolution (CR), there could be a lapse in funding that result in a government shutdown.

 

CRs generally continue the level of funding from the prior year’s appropriations or the previously approved CR from the current year. Full-year CRs provide appropriations for the remainder of the fiscal year and are functionally similar to final appropriations.

 

Authorization bills, such as the National Defense Authorization Act (NDAA) are the permission to spend the money. It’s Daddy saying it’s okay to buy something. But appropriations acts are the actual money in the bank account. Its Mom saying there’s no money in the bank to cover what Daddy says we can buy and until there is money in the bank, nothing can be spent. A CR can be viewed as a temporary loan by the government to itself until it can decide to put the money in the bank.

 

Because Congress failed to pass all 12 appropriations acts by October 1st, they agreed on a CR from October 1st to November 17th. When that temporary loan ran out, instead of passing appropriations, they agreed on a second CR from November 17th to February 2nd 2024 (for the Defense Department). Unless they take action, the government’s temporary loan will run out on February 2nd.

 

Between now and February 2nd, they can choose to agree on another short term CR; agree on a full year CR; or pass all 12 appropriations bills. Sometimes, they group the 12 bills into one bill, called an omnibus. Sometimes, they group several, but not all, into smaller bills called mini-buses.

 

Suffice it to say that since Congress is on recess until January 8th, we will not know what they will do until after the first of the year. That will leave them very little time to do what they were supposed to have done before September 30th. Congress will have 12 legislative (work) days between January 8th and February 2nd to put the government’s financial house in order. EANGUS will keep you informed as to the progress of what Congress is doing to ensure the government is fully funded in 2024.

 

— EANGUS National Office