Such effects include the disruption of government services and programs, creation of uncertainty about future fiscal policy, and the imposition of unnecessary costs on the economy. Without annual funding provided through the appropriation process, a government shutdown would occur and such a shutdown could have significant fiscal and economic effects. For fiscal years 1998 through 2022, 127 CRs have been enacted. Lawmakers often enact multiple CRs in a single fiscal year before deciding on full-year funding levels. Instead, lawmakers have come to rely heavily on CRs - temporary, imperfect solutions that avoid the difficult but necessary work of allocating funding. Missing the October 1 deadline to enact all 12 appropriation bills is not unusual in fact, that deadline has not been fully met since fiscal year 1997. How often are continuing resolutions used? Under regular budget order, lawmakers would enact all of those full-year appropriation bills before October 1. All of those activities are funded through the 12 regular appropriation bills that are supposed to be enacted into law each year by the Congress and President. However, over the past 10 years, appropriations have accounted for a third of total spending and support programs that touch nearly every aspect of our daily lives as well as various facets of the economy - including national defense, operating national parks, law and immigration enforcement, health care research, and a host of other activities.
The majority of federal spending is governed by permanent law and generally not constrained by the appropriation process. Predictability benefits the economy by providing certainty about government activities.
Funding the government for a full year is preferable to using a CR because it allows government agencies to plan appropriately and match their resources with their responsibilities. While temporary funding measures often avoid shutdowns, they also reflect the failure of lawmakers to reach agreement on some or all appropriation bills for a full fiscal year.
Why are continuing resolutions an important part of the budget process? Because legislators still have not reached an agreement, a third CR was enacted on February 18 to avoid a partial shutdown and provide temporary funding through March 11. A second continuing resolution was used to extend temporary funding through February 18. As a result, a continuing resolution was enacted on September 30 to avoid a partial shutdown and provide temporary funding for government operations through December 3. What is the current funding situation for fiscal year 2022?įiscal year 2022 began on October 1 and none of the 12 appropriation bills for the year were enacted yet. However, programs deemed as essential services, such as those related to public safety, often continue to operate even in the absence of a CR. Continuing resolutions are temporary “stopgaps,” often employed to avoid a partial government shutdown and to give lawmakers more time to enact appropriations for the full year. When those appropriation bills are not enacted by the start of the fiscal year on October 1, Congress uses a continuing resolution, or “CR,” as a temporary measure to fund government activities for a limited amount of time.
The day-to-day operations of most federal agencies are funded on an annual basis by appropriations.