When regular appropriation bills fail to pass, this bill would insert a new mechanism that automatically continues funding for programs, projects, and activities. It sets funding at a rate not to exceed 94 percent of prior-year levels, with a stepping-down schedule that reduces the rate by one percentage point after each 90-day period.
If an appropriation acts remains unresolved, funding continues into the next fiscal year under the same framework, subject to an explicit cap on discretionary increases and protections for entitlements. The measure also requires agencies to apportion funds in the same proportions as in the prior year and preserves current-law funding levels for entitlements and mandatory programs, while prohibiting large initial outlays that would otherwise undermine final funding prerogatives.
At a Glance
What It Does
It creates Section 1311 in Chapter 13 of title 31 to authorize automatic continuing appropriations when a regular appropriation hasn’t been enacted. It defines funding at the 94 percent ceiling (with alternatives), applies a 90-day step-down, and allows continuation of funding into the next fiscal year if needed. It also establishes apportionment rules and earmarks for entitlements.
Who It Affects
Federal agencies and departments implementing ongoing programs; funding recipients and grantees relying on federal dollars; entities that depend on entitlement and mandatory payments; and program beneficiaries affected by funding continuity.
Why It Matters
It provides a predictable funding mechanism to prevent abrupt shutdowns while preserving some level of budget discipline, especially for entitlements and mandatory programs, by tying continuation to clearly defined rates and periods.
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What This Bill Actually Does
The Government Shutdown Prevention Act of 2025 seeks to remove the default shutdown risk that occurs when Congress fails to pass annual appropriations. It inserts a new rule into federal law: if no regular appropriation is enacted for a program, project, or activity, federal funding for that item continues automatically at a capped rate.
The cap is initially 94 percent of the prior year’s rate of operation and can be adjusted downward in 90-day blocks by one percentage point per block, with these reductions spanning the fiscal year. If a regular appropriation finally becomes law, or a continuing resolution is enacted, funding continues under the same framework until the end of the period covered by the law.
The bill also directs agencies to allocate the continuing funds in the same proportions as in the prior year and ensures that entitlement and mandatory payments are funded at levels necessary to maintain current program operations under existing law. It includes protections against large, front-loaded initial disbursements and clarifies that expenditures remain charged to the applicable appropriations once the regular or continuing funding is enacted.
Finally, it adds a clerical amendment to place Section 1311 in the table of sections for chapter 13 of title 31.
The Five Things You Need to Know
The bill creates new §1311 in title 31 to authorize automatic continuing appropriations when a regular appropriation is not enacted.
Funding under this mechanism is capped at 94% of prior-year rates and subject to a 90-day step-down schedule.
Funding continues from lapse through the end of the fiscal year or until a regular appropriation or CR becomes law.
Agencies must apportion funds under the same prior-year proportions, maintaining consistency with past practice.
Entitlements and mandatory programs are funded to maintain current program levels under existing law, with safeguards against front-loaded distributions.
Section-by-Section Breakdown
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Automatic continuing appropriations when no regular appropriation is enacted
This provision inserts a new section into Chapter 13 of title 31. It states that on and after the first day of each fiscal year, if an appropriation Act for a program has not been enacted and continuing appropriations are not in effect, the program may be funded at the rate necessary to continue operations, either at the rate in the preceding year’s appropriation or under rules set by continuing appropriations for that year. The intent is to provide a seamless funding mechanism to avoid a shutdown while a regular appropriation is pending.
Funding rate mechanics and the 90-day step-down
This clause defines how funding rates are calculated. It sets the rate at the lower of 94 percent of the prior year’s rate, 94 percent of the rate under a prior-year continuing appropriation, or other specified values, with adjustments to reflect continuing appropriations for the 90-day periods. After each 90 days, the rate decreases by 1 percentage point, continuing this ramp-down through the fiscal year.
Duration, lapse funding, and apportionment requirements
Expenditures under this section are available from the first day of a lapse until the regular appropriation becomes law or a continuing resolution is enacted. Agencies must apportion funds in the same proportion as they were during the previous fiscal year, ensuring consistency in allocation during the continuation period.
Exceptions for high initial rates and certain programs
The bill preserves a safeguard against front-loaded funding for programs that would otherwise distribute funds at high initial rates at the start of a fiscal year, including some distributions to states or foreign entities. It also ensures that entitlements and mandatory payments, and for activities under the Food and Nutrition Act of 2008, are funded at rates necessary to maintain program levels under current law.
Table of sections update
The bill adds 1311 to the table of sections of chapter 13 of title 31, United States Code, to reflect the new continuing appropriations mechanism.
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Explore Government 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
- Federal agencies and departments that administer ongoing programs gain a predictable funding stream during lapses, avoiding immediate shutdowns and enabling continuity of operations.
- Program managers and grant administrators benefit from the ability to maintain service levels and staffing during funding gaps, reducing disruption to ongoing projects.
- Recipients of entitlements and mandatory payments (including programs governed by the Food and Nutrition Act and similar mandates) receive ensured funding at levels necessary to sustain current operations.
- Citizens relying on federal services experience fewer abrupt service interruptions due to funding gaps.
Who Bears the Cost
- Discretionary programs that rely on near-term discretionary funding may see lower initial funding rates (down to 90% over time), potentially delaying new initiatives.
- Agencies must adhere to stricter apportionment rules during continuation, which can constrain rapid reallocation of funds in response to emerging needs.
- Programs that would otherwise require increased funding to meet rising demand may see slower growth or temporary underfunding relative to last year.
- Taxpayers bear indirect costs if prolonged continuations replace policy changes that would have been funded under full annual appropriations.
Key Issues
The Core Tension
The central dilemma is whether ensuring uninterrupted funding by auto-continual appropriations at reduced rates improves governance and service delivery during stalemates, or whether it undervalues policy priorities by sustaining lower funding levels instead of pursuing full-year appropriations and potential new authorizations.
The mechanism trades the risk of a government shutdown for a controlled, rate-limited continuation of spending. While it prevents abrupt service outages, it also locks in lower funding levels at the outset of a lapse and enforces a gradual, ongoing reduction in the operational rate.
That dynamic can hinder policy experimentation, capital investments, or rapid responses to unforeseen events. The entitlements protection mitigates some risk for mandatory programs, but the overall framework assumes that continuity is preferable to full funding while Congress negotiates a new appropriations bill.
Additionally, the structure relies on disciplined apportionment to mimic prior-year allocations, which may reduce flexibility for urgent, need-based reallocations.
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