Congress Funds Government Through Dec. 11, Leaving FY27 Spending Fight for Lame Duck

WASHINGTON, President Trump signed a continuing resolution Sept. 2 that keeps the federal government funded through Dec. 11, averting a shutdown that would have begun Oct. 1 and pushing the fiscal year 2027 appropriations fight into a compressed lame-duck window.

The House cleared the Senate's bipartisan measure Sept. 1 by a vote of 370-48, according to a summary published by the Association of State and Territorial Health Officials. The Senate had already approved the bill 90-6.

The legislation funds all 12 major appropriations divisions at FY2026 levels, according to the National Association of Counties. It also delays until Dec. 11 the implementation of an Office of Management and Budget rule overhauling how federal grants can be administered under Uniform Guidance.

The resolution was negotiated by Senate Appropriations Committee Chair Susan Collins, R-Maine, and Vice Chair Patty Murray, D-Wash. Collins, who faces a competitive re-election race in Maine, said in a statement reviewed by NBC News that the measure gives Congress the time needed to continue work on "bipartisan appropriations bills, which are always my strong preference."

The Dec. 11 deadline creates a short runway. House Appropriations Chair Tom Cole and ranking member Rosa DeLauro said they want to complete FY27 bills after lawmakers return from the November elections, according to a federal policy update published by the National Center for State and Territorial Disease Control Programs. The House has moved all 12 annual spending bills through committee and passed three on the floor. The Senate Appropriations Committee has not marked up any of its bills.

The Senate's inaction stems from a fundamental divide over how to split discretionary spending between defense and nondefense programs. According to an analysis by the American Action Forum, Senate appropriators have been unwilling to advance individual spending bills until members agree on so-called 302(b) allocations, the topline figures that govern each subcommittee's budget. Historically those figures have been set on a bipartisan basis, but members remain split on how much to give defense versus domestic programs.

Republicans on the Senate committee are pushing for higher defense spending, while Democrats have resisted cuts to nondefense programs. Breaking Defense reported that Senate Republican and Democrat leaders remain at a stalemate on the balance, and that Senate appropriators have not released the text of the FY27 defense spending bill. Senate Democrats have also blocked the annual defense authorization bill from reaching the floor, citing the war in Iran and the defense topline dispute, according to Breaking Defense.

Akin Gump's appropriations practice noted in a client alert that the next few weeks will show whether Congress is building toward a year-end deal or simply making another stop along the way. Without agreement on a topline, analysts at the American Action Forum said a second continuing resolution extending into 2027 remains a real possibility.

The McConnell factor adds further uncertainty. The extended absence of Sen. Mitch McConnell has left Republicans without a functional majority on the full Senate Appropriations Committee, according to a policy update from the National Center for State Disease Control Programs, complicating any path to bipartisan markups.

FY2027 begins Oct. 1. Under the CR now in effect, agencies will operate on autopilot until at minimum Dec. 11, with full-year funding dependent on negotiations that have yet to produce a single Senate bill.

Sources cited:
- Association of State and Territorial Health Officials (ASTHO) (https://www.astho.org/advocacy/federal-government-affairs/leg-alerts/2026/summary-of-fy27-continuing-resolution/)
- National Association of Counties (NACo) (https://www.naco.org/news/senate-passes-bill-fund-government-through-december-11-and-delay-omb-rule)
- NBC News (https://www.nbcnews.com/politics/congress/senate-leaders-reach-deal-avert-shutdown-2026-elections-rcna590564)
- National Center for State and Territorial Disease Control Programs (NCSD) (https://ncsddc.org/federal-policy-update-september-4-2026/)
- American Action Forum (https://www.americanactionforum.org/insight/a-fy-2027-appropriations-progress-report/)
- Breaking Defense (https://breakingdefense.com/2026/08/the-fight-over-the-fy27-defense-budget-is-on-heres-13-key-issues-for-congress-to-resolve/)
- Akin Gump Appropriations Drop (https://www.akingump.com/en/insights/blogs/the-approps-drop/washingtons-new-deadline-a-longer-road-for-the-same-can)