Sponsors
The bill trades greater continuity and predictability of federal services and entitlement payments during funding gaps for reduced congressional flexibility, potential sustained costs to taxpayers, temporary cuts to discretionary programs, and added administrative burden.
Low-income individuals, Medicaid beneficiaries, and other program clients keep receiving entitlement and mandatory benefits (including Food and Nutrition Act programs) without interruption because those payments remain funded during funding lapses.
Federal agencies, state and local governments, hospitals, and other recipients maintain core operations during appropriations gaps because most prior-year-funded programs automatically continue at up to 94% of prior rates, apportioned in the same proportions and with prior-year terms and conditions, providing continuity and predictability.
The bill limits large initial disbursements and grant awards during a lapse, reducing the risk of locking in funding decisions that should be set by later appropriations.
Taxpayers could face additional or sustained costs because programs continue automatically without Congress authorizing or reviewing current-year priorities.
Automatic funding at up to 94% may restrict Congress's ability to change priorities or reduce waste by effectively pre-funding programs before congressional deliberation and approval.
Reducing most discretionary accounts to 94% of prior levels could force temporary cuts to discretionary services and delay new initiatives that require full-year funding, harming state and local programs and health systems.
Based on analysis of 2 sections of legislative text.
If Congress hasn't enacted a regular appropriation for an account by the fiscal year start, that account is automatically funded at a default rate equal to 94% of the applicable prior funding level, with protections for mandatory programs and nutrition benefits.
Introduced February 10, 2025 by Rand Paul · Last progress February 10, 2025
Creates an automatic funding rule that kicks in if Congress has not passed a regular appropriation for a federal account by the first day of the fiscal year. The rule automatically provides continuing appropriations equal to 94% of the prior year funding rate (with special protections for entitlements, other mandatory payments, and food assistance), apportions funds in the same proportions as the prior year, and limits actions that would preempt later final funding decisions. The mechanism charges those automatic expenditures to the relevant appropriation once a later regular appropriation or full-year continuing resolution is enacted, and it exempts accounts already funded or explicitly barred by other law. The change is meant to avoid government shutdowns by creating an automatic stopgap funding level and related rules for distributing funds until Congress acts.