House Must Choose Between Competing CRs as Oct. 1 Shutdown Deadline Nears

WASHINGTON -- Congress left town for August recess this month with the federal government's funding set to expire Sept. 30 and no final agreement in place, as the House and Senate passed competing stopgap measures with different deadlines and different policy strings attached.

The split sets up a pressure-filled September when lawmakers return, with both chambers holding incompatible bills and a hard clock running.

<cite index="22-7">The House voted 220-205 on July 21 to extend funding for the government at existing levels through Dec. 4.</cite> <cite index="22-8">Six Democrats joined with Republicans to advance the bill.</cite> Republican leaders called it a clean measure. <cite index="20-4">The National Taxpayers Union described it as "a clean continuing resolution that would fund the government, without gimmicks or poison pills, through December 4, 2026."</cite>

<cite index="20-11">Most congressional Democrats opposed the House-passed clean CR, in part because it did not reverse an Office of Management and Budget rule.</cite>

The Senate responded with its own version. <cite index="20-6">Senate Appropriations Committee Chair Susan Collins, R-Maine, and Vice Chair Patty Murray, D-Washington, released the Senate's proposed CR on Aug. 2, 2026.</cite> <cite index="11-1">On Aug. 8, the Senate voted 90-6 to pass a Continuing Resolution to fund the government through Dec. 11.</cite>

The two bills differ on more than the one-week gap in their deadlines. <cite index="21-5,21-6">The House CR keeps the government open through Dec. 4 at current funding levels, while the Senate CR extends current funding levels through Dec. 11 and includes provisions affecting federal grantmaking and several White House requests.</cite>

<cite index="11-3">The Senate CR also delays the implementation of an OMB rule overhauling Uniform Guidance, which governs how federal grants can be administered, until Dec. 11.</cite> <cite index="21-11">The Senate CR includes the White House's list of requests for special exceptions, known as "anomalies," affecting military health programs, national security, national park operations, and disaster relief.</cite>

The transit funding gap drew a warning from industry groups. <cite index="14-7,14-8">Without advance appropriations, the CR cuts overall federal public transit investment by 20 percent from current FY 2026 funding levels, and passenger rail investment is cut 83 percent.</cite>

The Senate bill now awaits action in the House when members return from recess. <cite index="14-3">The House is expected to act on the Senate CR when it returns in late August to avoid a full federal government shutdown and expiration of the Infrastructure Investment and Jobs Act on Sept. 30.</cite>

<cite index="18-8">The desire to avoid a situation similar to last fiscal year, augmented by the preference to avoid a government shutdown in an election year, is manifesting in an earlier-than-usual adoption of a short-term continuing resolution to fund the government through the 2026 midterm elections.</cite>

The stakes are elevated by recent history. <cite index="20-1,20-2">Fiscal year 2026 has been marked by unprecedented brinkmanship over government funding, resulting in parts of the government being shut down for 161 days, equivalent to 44 percent of the full year.</cite>

<cite index="17-7,17-8">The House Appropriations Committee has passed all 12 individual spending bills, with 3 of the 12 also passing the full House, while the Senate Appropriations Committee has yet to agree on topline spending levels and has yet to pass any of its 12 spending bills.</cite>

<cite index="12-2">When Congress returns from August recess, it will have about 15 legislative days left to fund the government before Fiscal Year 2027 begins on Oct. 1.</cite> If no agreement is reached by that date, the federal government would face its third shutdown in less than a year.

Sources cited:
- Afterschool Alliance (https://afterschoolalliance.org/afterschoolsnack/FY27-Appropriations-update-Competing-Continuing-Resolutions_08-10-2026.cfm)
- National Association of Counties (https://www.naco.org/news/senate-passes-bill-fund-government-through-december-11-and-delay-omb-rule)
- NPR (https://www.npr.org/2026/07/21/nx-s1-5902245/government-funding-house-vote-continuing-resolution)
- Committee for a Responsible Federal Budget (https://www.crfb.org/blogs/appropriations-watch-fy-2027)
- National Taxpayers Union (https://www.ntu.org/publications/detail/the-senate-cr-and-the-shutdown-threat)
- Conference Board (https://www.conference-board.org/research/policy-backgrounders/congress-moves-closer-to-avoiding-government-shutdown)
- APTA Passenger Transport (https://aptapassengertransport.com/senate-appropriations-committee-leaders-unveil-continuing-resolution/)
- AESA (https://www.aesa.us/2026/08/13/fy2027-appropriations-update/)
- FedTools (https://www.fedtools.com/blog/government-shutdown-october-2026)