NRCC Policy Primer: What the heck is a “continuing resolution”?

September 9, 2013

What the heck is a “continuing resolution”?

Well, since you asked, a continuing resolution, also known as a “CR,” continues funding for federal government programs if the fiscal year ends without a new appropriation having been passed into law.  A “CR” provides temporary funding for government programs at current levels or in some cases, less than current levels.

Huh?

Yeah, sorry.  Here’s a little background.

First, the basics.  CRs are adopted by Congress if regular appropriations bills are not enacted by the start of the fiscal year.  CRs continue funding the government until regular appropriations bills are enacted. Basically, if regular appropriations bills get bogged down in the legislative process and the spending bills haven’t been passed before the start of the next fiscal year, programs do not get funding and the government will “shutdown”.  A CR is generally passed with a specific end date to avoid shutdown and keep the government running while the negotiations for regular spending bills are hammered out.

How does it even get to this point?

Well, it actually happens more often than you would think.  In fact, the last time Congress was able to successfully pass all of its regular appropriations bills into law was in 2005 (FY 2006) when Republicans last controlled the House, Senate, and the White House at the same time.  In every year since, Congress has had to resort to passing CRs or “omnibus” appropriations bills (a super bill that combines some or all pending appropriations bills into a single vote) in order to keep the government funded and avoid shutdown.

Wait, what is an appropriations bill and why are they so hard to pass?

First, you should know that annual budgeting for the federal government is an enormously complex process.  The Washington Post produced a one-page graphical display of the major portions of the federal budget process, which you may find helpful.

The power to appropriate funding is a legislative power.  The Constitution provides that “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”  Accordingly, Congress annually considers several appropriations measures which provide funding for the numerous departments, programs, operations and activities of the federal government.

So while the president submits a budget request to Congress – supposedly no later than the first Monday in February, although President Obama has missed that deadline a few times – the president’s budget is only a request to Congress; Congress is not required to adopt his recommendations.

Each year, after the president submits his budget request, both the House and Senate consider their own budget resolutions to establish a framework within which Congress considers legislation dealing with spending and revenue.  Generally, once the budget resolution is adopted by both chambers, they then consider appropriations bills that are consistent with the budget resolution.

Put simply, “appropriating” means “spending.”  Appropriations bills provide funding for the federal governments departments, agencies, and programs that have been previously authorized by other laws.

There are 12 regular appropriations bills that provides funding for departments and agencies under their jurisdiction.  Those are:

  1. Agriculture, Rural Development, Food and Drug Administration, and Related Agencies;
  2. Commerce, Justice, Science, and Related Agencies;
  3. Defense;
  4. Energy and Water Development, and Related Agencies;
  5. Financial Services and General Government;
  6. Department of Homeland Security;
  7. Interior, Environment, and Related Agencies;
  8. Departments of Labor, Health and Human Services, Education, and Related Agencies;
  9. Legislative Branch;
  10. Military Construction, Veterans Affairs, and Related Agencies;
  11. State, Foreign Operations, and Related Programs; and
  12. Departments of Transportation, and Housing and Urban Development, and Related Agencies

You’ve heard of I’m just a bill?

Well, appropriations bills, like other bills, must be passed by the House and Senate, have any differences reconciled between the two chambers through a conference committee, have the final versions of the bill pass both chambers, and then finally, be sent to the president for his signature in order for the funding to be realized.

If that process is not completed before the last appropriations bill “runs out” at the end of the federal government’s fiscal year, programs are not funded and you have a government shutdown.

Therein lies the issue.  As the new fiscal year begins on October 1, Congress again finds itself needing a short-term CR in order to avoid a government shutdown.  House Republicans have been working to pass the House’s annual slate of appropriations bills but due to the Senate’s failure to pass even a single appropriations bill a CR is necessary to provide additional time to hopefully complete this process.

Congress is expected to begin moving a short-term CR this week that would avert a government shutdown at the end of this month and put off fights over fiscal issues until Congress decides whether to grant President Barack Obama authority to launch a military strike against Syria.  A short-term CR would likely not deal with sequestration, nor would it address raising the nation’s debt ceiling, which is due to be reached in mid-October.  More on both those topics at a later date.