Why It Matters

Congressional appropriations for fiscal year 2027 are operating under a temporary legal framework, as detailed in a new Congressional Research Service (CRS) report published Sept. 17. PL 119-103, signed by the president on September 2, provides interim funding from Oct. 1 through Dec. 11 for federal agencies covered by all 12 regular appropriations bills. That timetable leaves Congress needing either to complete the regular bills or approve another continuing resolution before a funding gap could begin Dec. 12.

The Congressional Budget Office projects that the measure represents $1.701 trillion in annualized discretionary budget authority for fiscal year 2027. For the Trump administration, the stopgap preserves a range of requested exceptions and policy provisions while postponing final decisions on full-year spending.

The Big Picture

The report places the measure in the annual appropriations process, in which Congress develops 12 bills that generally finance federal agencies and their programs for each fiscal year. When those bills are not enacted before Oct. 1, Congress may use a continuing resolution, commonly called a CR, to provide interim funding while full-year legislation remains under consideration.

None of the regular fiscal year 2027 appropriations bills had become law when P.L. 119-103 was enacted, although the House Appropriations Committee had reported all 12 and the House had passed three. The Senate Appropriations Committee had reported none, and the Senate had not considered any of the regular bills.

For most programs, the CR carries forward fiscal year 2026 amounts, authorities, and conditions, while generally barring new starts, unusually high initial operating rates, early distribution of appropriations, and grants that could intrude on Congress’s final funding decisions.

The Trump administration reportedly sent Congress a fiscal year 2027 CR request in July, and Congress retained discretion to accept, reject, modify, or supplement the requested provisions.

The Bottom Line

The law’s policy impact is concentrated in targeted exceptions rather than a new governmentwide funding formula. It permits up to $26.37 billion for the Disaster Relief Fund, with obligations charged against any fiscal year 2027 appropriation for that fund rather than treated as a supplemental appropriation. It also extends the National Flood Insurance Program and its $30.4 billion borrowing authority, while allowing the program to issue new policies during the stopgap period.

The measure also excludes the $11.661 billion Internal Revenue Service rescission in the fiscal year 2026 Labor, Health and Human Services, Education, and Related Agencies appropriations act from the CR’s coverage.

The next test is whether negotiations convert these temporary authorities and account-specific accommodations into regular fiscal year 2027 bills, or whether another stopgap becomes necessary.

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