Continuing Resolution

A continuing resolution (CR) is a temporary law Congress passes to authorize government spending when it has not yet completed the regular appropriations process. It allows the government to continue operations at prior-year spending levels, typically for a few weeks or months, until permanent appropriations bills pass.

Why continuing resolutions exist

Congress is supposed to pass 12 appropriations bills by September 30 each year, setting spending levels for the federal government for the fiscal year beginning October 1. Each bill covers a different area of government (defense, interior, labor, health and human services, etc.).

In practice, Congress often fails to meet this deadline. Negotiations over spending levels stall, riders (policy provisions) attached to bills create disputes, or simple gridlock prevents agreement. When midnight of September 30 approaches and appropriations bills have not passed, Congress passes a continuing resolution to avoid a government shutdown.

A continuing resolution extends the prior year’s spending level for a set period, usually 2–4 weeks, giving Congress more time to negotiate permanent appropriations bills.

How a continuing resolution works

A continuing resolution typically sets government spending at one of the following:

• Prior-year level: The budget level from the previous fiscal year. This is the default.
• Some percentage of the new proposal: If one chamber has passed its version of an appropriations bill, the CR might use that as a guide.
• Pro-rata amount: Sometimes CRs adjust for inflation or other factors.

Under a CR, agencies can generally spend at roughly the prior-year rate. Some flexibility exists for exceptional circumstances, but agencies largely continue prior activities rather than launching new programs or initiatives.

Continuing resolutions and policy

Continuing resolutions create policy uncertainty. Agencies cannot plan long-term spending or new hires. Contractors worry about delays. New programs cannot begin because there is no spending authority. Some provisions in old appropriations bills may technically expire when the CR takes effect, requiring agencies to seek legal guidance.

Additionally, continuing resolutions can be used as leverage in fiscal negotiations. If one party opposes an appropriations bill, it can allow the CR to expire, triggering a government shutdown, and use the threat to extract concessions.

Multiple continuing resolutions in a single year

It has become common for Congress to pass multiple continuing resolutions in a single fiscal year. The 2023 fiscal year saw three CRs, each extending funding for a few weeks while Congress negotiated. This is a sign of deep partisan gridlock.

Some argue that repeated CRs are a sign of fiscal dysfunction; others see them as a reasonable temporary measure allowing time for negotiation. Either way, they have become routine.

Continuing resolutions vs. appropriations bills

A continuing resolution is temporary and sets spending at prior-year levels. An appropriations bill is permanent (for one fiscal year) and can adjust spending levels, add new funding, or cut budgets. CRs exist because Congress has not finished the appropriations process.

See also