Sponsors
The bill prevents government shutdowns and preserves core and mandatory benefits by providing temporary funding tied to prior-year levels, but does so by imposing an across-the-board cap that can reduce services, weaken incentives for timely appropriations, and create operational/accounting challenges for some programs.
Federal employees, state and local governments, taxpayers, and program beneficiaries experience uninterrupted federal program operations at the start of a fiscal year when Congress fails to enact appropriations because the bill provides automatic temporary funding so agencies can keep running.
Low-income individuals and recipients of entitlement and nutrition programs (e.g., SNAP/WIC and mandatory payments) continue to receive needed benefits because those programs are exempt from the 94% cap and thus remain funded at required levels.
Federal agencies, state partners, and grant recipients benefit from preserved prior-year apportionment proportions and prior-year terms/conditions, which maintains predictable program administration and reduces sudden programmatic changes during funding lapses.
State and local governments, small businesses, and some program recipients may face reduced services, delayed projects, or funding shortfalls because non-exempt programs are capped at 94% of prior-year funding.
Taxpayers and the public may experience reduced legislative accountability because automatic temporary funding can lessen Congress's urgency to timely pass final appropriations.
State and local governments, nonprofits, and programs that rely on early-year lump-sum or front-loaded payments (including seasonal grant-funded activities) may suffer operational challenges because the bill prohibits front-loading of funds.
Based on analysis of 2 sections of legislative text.
Creates an automatic continuing appropriation that continues federal programs at up to 94% of prior-year funding when Congress has not enacted regular appropriations, with specified exceptions.
Creates an automatic continuing appropriation that keeps federal programs running at the start of a fiscal year when Congress has not enacted regular appropriations. The automatic funding provides up to 94% of the prior-year rate for affected accounts, preserves apportionment proportions and prior-year terms, exempts mandatory entitlements and most nutrition programs from the 94% cap, and prevents front-loading of payments to get around final appropriations.
Introduced February 10, 2025 by Rand Paul · Last progress February 10, 2025