Changes to the structure of these committees in the early and mid-2000s eventually brought the number of subcommittees, and in turn the number of stand-alone appropriations acts, down to 12. Congress has not enacted all 12 appropriations acts since fiscal year (FY) 1997, however. Instead, Congress has relied on CRs to keep agency operations funded. Since FY1998, Congress has enacted 125 CRs to keep federal agencies funded.

Financial Planning

The majority of federal spending is governed by permanent law and generally not constrained by the appropriation process. 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. Under regular budget order, lawmakers would enact all of those full-year appropriation what does cr stand for in government bills before October 1. Moreover, the repeated use of CRs can erode Congress’s institutional capacity for effective budgeting. When CRs become the norm, the essential deliberative processes of hearings, debates, and detailed bill development are curtailed or bypassed. Over time, this consistent deviation from regular order could lead to diminished emphasis on in-depth appropriations work among members of Congress and their staff.

What does CR Stand For in Government & Military ?

The current usage of the CR represents a corruption of the federal budget process, a damaging effect on the economy, and a failure of politicians to compromise. Yet this is how the country has been running because the government has failed to pass a yearly budget for the last 14 years.i This means that the country limps along from one CR to the next, waiting on the certainty and sanity of a budget. In fact, all 12 regular appropriations bills haven’t been enacted on time since fiscal year 1997. This persistent pattern has led to a heavy reliance on CRs as the default method of keeping the government running, rather than as exceptional measures. The resulting lack of appropriations led to the shutdown of non-essential functions of the federal government for 28 days due to lack of funds.

The Temporary Fix: Continuing Resolutions

The uncertainty causes interest rates to be higher and removes the impetus for business to reinvest profits. Instead businesses hold onto their money due to the uncertainty, thus hampering economic growth. Brittany A. Madni is the Executive Vice President of the Economic Policy Innovation Center (EPIC). She served as a Congressional aide and trusted senior advisor for a decade on Capitol Hill, developing a nuanced understanding of the legislative process with an emphasis on budget and appropriations strategy.

Flexibility and Agency Operations

Ensure that all project documentation is up to date and readily accessible. Accurate and timely reporting can help maintain a positive relationship with contracting officers and reduce the risk of audit issues. Contractors should review their cash flow projections and ensure they have sufficient reserves to manage any delays in payments. Consider negotiating flexible payment terms with subcontractors and suppliers to maintain liquidity.

Head-to-Head: Regular Appropriations vs. Continuing Resolutions

Congress then goes through the appropriations process by holding hearings, creating and modifying the bills, and then passing those bills. Between FY1977 and FY2019, there were 20 instances where funding gaps led to at least one full day without available appropriations for some parts of the government. The duration of these shutdowns ranged from a single day to as long as 35 days. During the FY2019 shutdown, an estimated 800,000 employees were affected, and a similar number in the 2013 shutdown. This historical data clearly quantifies how CRs have become a standard, rather than exceptional, part of the federal budgeting landscape, underscoring a significant shift from the intended regular appropriations process.

• This entire process allows Congress to thoroughly assess federal programs, make informed decisions about resource allocation, and clearly communicate its spending priorities.
• While temporary funding measures often avoid shutdowns, they also reflect the failure of lawmakers to reach an agreement on some or all appropriation bills for a full fiscal year.
• This separation aims to prevent funding unapproved activities, promoting more responsible governance.
• In 2013, the government shut down for 16 days – forcing employees to be furloughed, national parks to close, childcare and other services for military families to shutter, and loans to small businesses to stall.

It went to the President’s desk on Dec. 11, 2020, and was signed into law in the nick of time. President Obama submitted a budget to Congress that provides a roadmap for accelerating economic growth, expanding opportunity for all Americans, and ensuring fiscal responsibility. His budget shows the choices he would make within the spending levels that Congress agreed to in the Bipartisan Budget Act. While the short-term extension protects thousands of businesses — large and small — from taking an unnecessary financial hit, a long-term renewal would be the best way to provide much-needed certainty to job-creators that export American-made products and services. If some bills are covered in a CR but others are not, the government could continue operations for those departments and programs covered under the CR but shut down for departments and programs not covered under the CR. The detailed, multi-stage nature of regular appropriations reflects a system designed for thorough planning and comprehensive debate.

While temporary funding measures often avoid shutdowns, they also reflect the failure of lawmakers to reach an agreement on some or all appropriation bills for a full fiscal year. Funding the government for a full year is preferable to using a CR because it allows government agencies to appropriately plan and match their resources with their responsibilities. Predictability benefits the economy by providing certainty about government activities.

The Domino Effect: Consequences of Relying on CRs

• While not the easiest task, the budget process has been successful for over 75 years.
• After this date, if Congress does not reach an agreement on the new budget, the risk of a government shutdown resurfaces.
• In this article, we’ll break down everything contractors need to know about the Continuing Resolution of 2024, its implications and how to prepare for the weeks ahead.
• This means members may be compelled to vote for a package that funds programs they oppose or fails to adequately fund programs they support, simply to ensure the government remains open and funded for the remainder of the fiscal year.
• Ideally, the 15 departments and other agencies that comprise the federal government would be funded well in advance of the end of the fiscal year.

That said, the Coast Guard once experienced major delays in paying their troops during 2019 because the Department of Homeland Security (which the Coast Guard falls under) was not funded for a time. Basically, during a full shutdown, all federal agencies will follow its own shutdown program. Federal budgets must be passed before the deadline of Sept. 30 in order for the government to continue operating as it is expected to.

The basic unit of an appropriation bill is an account, and while funds are often consolidated, specific amounts for activities within an account may be directed, with further details typically found in accompanying committee reports. General provisions can apply to all accounts within a bill or even across multiple acts. This level of specificity allows Congress to guide, and to some extent micromanage, the use of funds, ensuring closer alignment with legislative intent. These bills provide the legal authority—known as budget authority—for federal agencies to spend money from the U.S. This funding typically covers a single fiscal year, running from October 1 to September 30. Master list of the most frequently used government contracting acronyms.

The day-to-day operations of most federal agencies are funded on an annual basis by appropriations. 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 time. 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. However, programs deemed essential services, such as those related to public safety, often continue to operate even without a CR.

Fiscal year 2025 began on October 1, 2024 and none of the 12 appropriation bills for that year had been enacted at that time. Instead, a continuing resolution was enacted on September 26 to avoid a government shutdown and provide temporary funding for government operations (plus some supplemental funding for other purposes) through December 20. As that date approached, legislators still had not reached an agreement on appropriations for fiscal year 2025, so a second CR was enacted to extend government funding through March 14, 2025 (plus some supplemental funding for other purposes). Ahead of the midnight deadline on that date, lawmakers passed a third CR to continue funding through the remainder of fiscal year 2025 at the previous year’s level for most programs. While not an ironclad rule, members of both parties typically try to avoid government shutdowns.

A continuing resolution is legislation that allows federal agencies to continue operating at current funding levels for a set period, buying Congress more time to agree on a full-year budget. In essence, it’s a financial Band-Aid that keeps the government running. Without its annual spending measure, a department or agency loses the legal authority to obligate more money for nonemergency operations after Sept. 30 of each year. So a CR takes its name from the fact that, unless the measure becomes law, many federal programs may not maintain “continuing” operations because they have run out of appropriated money. The normalization of CRs may create a perverse incentive structure. The “stopgap” measure effectively becomes an expected, almost routine, part of the annual budget cycle.

Once passed by both chambers and signed by the President, they carry the full force of law, just like regular appropriations. Between 1980 and 2013, there were eight government shutdowns in the United States.9 Most of these shutdowns revolved around budget issues including fights over the debt ceiling and led to the furlough of certain ‘non-essential’ personnel. The majority of these fights lasted 1–2 days with a few exceptions lasting more than a week. The CR offers a temporary reprieve from the threat of a government shutdown, but it also highlights the need for vigilance and preparedness among government contractors. By understanding the implications of a CR, staying informed about legislative developments and proactively managing your contracts, you can navigate this period of uncertainty more effectively. The current CR extends government funding until December 20, 2024.