On September 1, the House of Representatives approved the Senate-passed continuing resolution (CR) that will fund the federal government’s discretionary spending through December 11. The CR includes extension of authorization and funding for the National Flood Insurance Program (NFIP), also through December 11. The vote was 370 to 48. President Trump signed the measure into law on September 2, thus averting a government shutdown and stoppage of the NFIP prior to the November elections.
The government funding stopgap spending measure generally authorizes existing discretionary spending levels until the CR’s expiration on December 11. It makes few policy or spending authority changes. So, it punts fiscal year 2027 (running from October 1, 2026 to September 30, 2027) spending decisions until after the November mid-term elections.
There is likely to be substantial controversy over spending decisions in this November to December lame duck session of the 119th Congress. Based on current positions in this Congress, Republican lawmakers are expected to seek big spending cuts in many domestic spending areas—e.g., budget cuts are expected for the Departments of Labor, Health & Human Services, and Treasury If these cuts happen, they could impact agencies’ regulatory activities.
Prospects: The intensity of the spending debates coming after the elections will be heavily influenced by the results of the November elections. If the House and/or Senate will flip to Democratic control in the 120th Congress in 2027, the current 119th lame duck Congress, controlled by Republicans, may fight harder to enact into law the GOP’s preferred spending priorities.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org