With the midterm elections just over two months away, the House returned to Washington this week to complete action on an extension of Fiscal Year 2027 funding to keep the government operating beyond the September 30 end of the fiscal year. By a vote of 370-48, lawmakers Tuesday passed a continuing resolution (CR) to keep the government fully open through the midterm election season. The House voted to adopt the Senate-approved stopgap legislation — which funds federal agencies through Dec. 11. For construction markets this was the better outcome because the Senate bill extended funding for highway, wastewater and drinking water programs at current levels and also extended highway program authorization through Dec. 11. This action was necessary as the surface transportation legislation also expires on September 30.


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Before leaving for an extended August recess both the House and the Senate passed a continuing resolution (CR) to keep the government operating past the September 30 end of FY 2026. Congress wanted to get this issue off their plates before heading home to campaign for the midterm elections. A CR was necessary because while all 12 annual appropriations bills have been reported out of committee, and three bills were subsequently passed by the full House, the Senate has not moved forward on any of these measures.


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As the government shutdown enters its second week there is no deal in sight to end the impasse. Punchbowl news reports the Senate will vote this week - for the fifth time - on advancing the House-passed Continuing resolution (CR) to fund federal agencies through Nov. 21. However, there is no indication that the eight Senate Democrat votes needed to pass the bill can be found. Senate GOP leaders continue to believe that eventually enough votes will emerge as the standoff continues and pressure mounts to get a deal done. Senate Majority Leader John Thune (R-SD) intends to continue to bring the measure up for additional votes. Speaker Johnson (R-LA) has kept the House in recess for an additional week believing that he has done his job and it is now up the Senate.

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Congress will return from its summer recess and attempt to complete action on the FY 2026 federal budget having thus far taken limited action on the 12 annual appropriations bills. Although some appropriations bills have advanced earlier than in recent years significant differences in funding levels threatens the possibility of a government shutdown. The October 1 start of the new fiscal year looms large, raising the possibility that a short-term continuing resolution (CR) will again be needed to keep the government operating.


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The annual end of the year battle is taking place as Congress must pass legislation to fund the government before leaving town for the year. This is done in the spirit of Christmas and attempts by leadership in making – or not making because not everyone has been nice - the final bill a Christmas tree full of gifts, and additional spending. Certain Republicans, preparing for their recently won, albeit narrow majority, are making waves about what not to spend money on with threats of holding the final bill hostage and potentially shutting down the government. Trust me, no Member of Congress wants to be in Washington for the holidays!


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The House of Representatives Committee on Appropriations issued a continuing resolution or CR that would fund federal government programs from the beginning of fiscal year 2021 on October 1 through December 11 but its fate remains uncertain as the House’s Democratic leadership continues negotiating with the White House.

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