The Eliminate Shutdowns Act would add a new mechanism to title 31 of the U.S. Code that automatically funds government programs when a lapse in appropriations occurs. Funding would flow at the rate provided by the most recent appropriation acts, with funding extended in 14-day increments as long as a lapse continues.
The bill also permits limited intra-government transfers (up to 5 percent per account) with OMB oversight, and it imposes guardrails to prevent premature or excessive distributions that could undermine final funding prerogatives. It would take effect on September 30, 2025.
Why this matters: for agencies and programs that depend on annual or multi-year appropriations, the act promises continuity and reduces the risk of abrupt shutdowns. It also introduces budgeting guardrails intended to constrain how funds can be shifted or used during a lapse.
As drafted, the bill redefines how funding flows during lapses and how those funds are accounted for, with budgetary effects treated as discretionary spending for enforcement purposes.
At a Glance
What It Does
Adds a new 1311 automatic continuing appropriations mechanism: when a lapse occurs, funding is provided at the rate of prior-year acts for ongoing programs. Funding lasts in 14-calendar-day blocks, with automatic extensions if the lapse continues, and entitlements are funded at rates needed to maintain current program levels.
Who It Affects
Federal agencies with discretionary programs, entitlement programs carried forward from prior acts, and program managers or budget officers responsible for continuing operations during lapses. The transfer authority (up to 5% per account) also affects agency finance offices.
Why It Matters
Provides operational continuity and predictability during lapses, potentially reducing furloughs and service interruptions, while introducing constraints designed to preserve final funding prerogatives and maintain fiscal discipline.
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What This Bill Actually Does
The bill adds a new provision to the U.S. Code that automatically funds programs when Congress has not enacted a full-year appropriation. When a lapse occurs, agencies would have available funds to keep programs running at the prior-year levels, for the period and under the terms of the preceding appropriation acts.
This automatic funding would apply to discretionary accounts and, for mandatory or entitlement-like payments that were authorized in existing or prior-year acts, would fund at rates necessary to maintain current program levels, subject to the act’s conditions.
Funding under this section would be available in 14-day periods. If the lapse continues, funding would be extended for another 14 days, creating a rolling sequence designed to prevent immediate shutdowns while still capping the duration of continuous funding under this mechanism.
Agencies could transfer up to 5 percent of an appropriation account to other accounts with the approval of the Office of Management and Budget, but transfers could not fund items for which Congress has specifically denied funding, and agencies must report any transfers to the congressional appropriations committees.The act also contains guardrails intended to prevent triggering high initial payout rates or broad disbursements that would bypass normal funding prerogatives. It clarifies that the automatic funding does not override other legal requirements and that only the minimal funding actions necessary to sustain programs should be taken.
Finally, the act sets the date by which it would take effect and includes budgetary treatment and enforcement provisions to align with existing budget rules.Taken together, the mechanism is designed to reduce the risk of government shutdowns and preserve essential services, but it also raises questions about accountability, the pace of policy change, and how to balance continuity with Congress’s authority to adjust funding in response to new information.
The Five Things You Need to Know
The bill adds 1311 to title 31, establishing automatic continuing appropriations during a lapse in funding.
Funding continues at the prior-year rate for programs and is issued in 14-day blocks that can roll over if a lapse persists.
Agency transfers between accounts are allowed up to 5% with OMB approval, subject to restrictions on funding prohibited items.
Entitlements and other mandatory payments are funded at the rate necessary to maintain current levels under the preceding appropriation acts.
The act becomes effective September 30, 2025 and is treated as discretionary for budgetary enforcement purposes.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Definitions and scope of lapse and preceding appropriations
This section defines 'lapse in appropriations' as the period when there is no enacted full-year appropriation for a program, project, or activity and no continuing resolution is in effect. It also defines 'preceding applicable appropriation Act' to include the most recent continuing resolution or full-year act. These definitions determine when automatic funding triggers and how funds are sourced during a lapse.
Automatic funding mechanism and 14-day periods
On the first day of a lapse, funds are made available for continuing programs at the rate provided by prior acts. Funding remains available for 14 calendar days, with the possibility of automatic 14-day extensions if the lapse continues. This creates a rolling window of continuity that ends only when an appropriation Act or continuing resolution is enacted.
Minimum funding period and extension rules
If the lapse continues beyond the initial 14 days, the period extends by another 14 days, maintaining program funding under the terms of prior acts. This provides predictable incremental funding during extended lapses while avoiding indefinite funding.
Transfer authority between accounts
Agency heads may transfer up to 5% of an appropriation account with OMB approval to fund higher-priority items. Transfers cannot support items Congress has explicitly denied, and agencies must notify Appropriations committees of any transfers.
Restrictions on reviving prohibited programs
This section bars using the automatic mechanism to initiate or resume programs that were prohibited in the previous year’s appropriations. It preserves Congressional prerogatives by ensuring that automatic funding does not bypass known denials.
Cross-reference update
The bill adds a new entry (1311) to the table of sections for chapter 13, ensuring the statute book reflects the new automatic continuing appropriations mechanism.
Budgetary effects and enforcement
The act treats the 1311 mechanism as discretionary appropriations for budgetary accounting, clarifying that resources under this provision are considered part-year appropriations for enforcement under current law. It also addresses baseline treatment and enforcement of discretionary spending limits.
Effective date
The act takes effect on September 30, 2025, establishing the forward-looking operative date for the automatic appropriations mechanism.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Agency program managers and budget officers gain a predictable funding path that reduces the risk of mid-year shutdowns and service interruptions.
- Federal employees supporting discretionary programs benefit from operational continuity during lapses, decreasing the likelihood of furloughs tied to funding gaps.
- Contractors and grantees reliant on ongoing funding experience fewer abrupt terminations or delays in obligations.
- States and grantees receiving federal funds for ongoing programs (e.g., nutrition, health, social services) can expect steadier flows consistent with prior-year levels.
- OMB and agency budget offices gain a clearer rule-set for handling funding during lapses, including defined transfer authority.
Who Bears the Cost
- Taxpayers may incur longer periods of money committed at prior-year levels, potentially limiting timely adjustment to new priorities or inflation.
- Agencies may continue funding inactive or lower-priority programs if not carefully constrained by the act's guardrails.
- Congress loses a degree of mid-year leverage to reshape funding in response to changing circumstances while a lapse persists.
- Budgets must absorb the administrative overhead of monitoring and reporting transfers and compliance requirements.
- Programs that would otherwise be scaled back or closed during a lapse may persist longer than initially planned.
Key Issues
The Core Tension
The central dilemma is whether to prioritize continuous government operations over the Parliament's prerogative to recalibrate funding each year. Automatic funding safeguards service delivery during lapses, but it can suppress timely policy updates and fiscal discipline, creating a trade-off between stability and adaptability.
The Eliminate Shutdowns Act trades direct resolution of funding priorities for continuity during lapses, which reduces the likelihood of abrupt shutdowns but risks locking in outdated or ineffective programs at current funding levels. The rolling 14-day extension mechanism could delay essential reform where priorities shift rapidly, and the transfer authority, while limited to 5%, may still enable executive discretion to reallocate funds in ways that bypass legislative intent if not properly monitored.
The act relies on pre-existing appropriation acts to set rates, which may preserve prior-year politics rather than adapt to inflation, new programs, or emergent needs. Additionally, the treatment of funding as discretionary for accounting purposes might blur lines between emergency and baseline spending and complicate enforcement of long-term fiscal targets.
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