Senate passes bill to fund the government through December 11 and delay OMB Rule

Key Takeaways

On August 8, the U.S. Senate overwhelmingly voted 90-6 to pass a Continuing Resolution (CR) to fund the government through December 11 or until applicable appropriations acts are passed to fund the government through Fiscal Year (FY) 2027 – whichever comes first. The bill continues funding at FY 2026 levels for the 12 major appropriations divisions, while including a series of targeted funding allocations, rescissions and program-specific provisions.

Importantly, the CR  delays the implementation of an Office of Management and Budget (OMB) Rule overhauling Uniform Guidance, which governs how federal grants can be administered, until December 11. This marks a major win for counties, who have serious concerns about the new rule’s implications on how they can administer federal funds. The CR next moves to the U.S House of Representatives for consideration after it passed its own version of a CR that would fund the government only until December 4. The House’s CR did not include some other provisions, including the delay to OMB’s proposed rule.

Read More About the OMB Rule Delay Here

The CR would prevent a funding lapse leading to a government shutdown if Congress does not pass all necessary appropriations bills before the end of the fiscal year on September 30. So far, Congress has not passed any appropriations bills through both chambers. For more information on the status specific FY 2027 spending bills and county funding priorities, access NACo’s FY 2027 Appropriations Tracker.

Access the 2027 Appropriations Tracker Here

What’s in the CR?

This CR continues funding levels for most government agencies and programs at the same levels as FY2026. It also allows for necessary increases in budget to maintain operations and extensions for the Livestock Mandatory Reporting and National Flood Insurance programs.

The Senate CR includes more line-item provisions and specific allocations for programs compared to a CR passed by the House on July 21 — a clean CR that would fund the government through December 4 and does not delay the OMB Rule.

Defense

• Prevents the Department of Defense (DoD) from spending increases from the FY 2026 levels and requires that any new multi-year contracts for military equipment receive Congressional approval
• Authorizes nearly $2.61 billion for navy shipbuilding programs
• Authorizes nearly $2.85 billion for national security procurement 
• Allows for necessary spending to maintain nuclear security weapons activities

Nutrition Assistance Programs

• Continues Supplemental Nutrition Assistance Program (SNAP) funding at current program levels and allows for a 30-day grace period for mandatory payments
• Allows for necessary spending to maintain participation in Special Supplemental Nutrition Program for Women, Infants and Children (WIC)
• Allows for necessary spending to maintain current caseload for the Commodity Assistance Program

Agriculture

• Allows for necessary spending to accommodate approved applications for farm ownership loans under the Agricultural Credit Insurance Fund Program
• Extends the Livestock Mandatory Reporting program until Dec. 11

Housing

• Authorizes the Department of Housing and Urban Development (HUD) to use unobligated funds from certain tenant-based rental assistance accounts to prevent shortfalls in core Housing Choice Voucher renewals; this does not include HUD-VASH vouchers or family unification program vouchers
• Authorizes HUD to use tenant protection vouchers to support households impacted by expiring Emergency Housing vouchers.
• Extends availability of homelessness assistance grant funding (such as Continuum of Care and Emergency Solutions Grant funding) through FY27
• Authorizes nearly $6.3 million in competitive funding through FY 29, to forgive or restructure flexible subsidy (Flex Sub) loans for small, non-profit owned affordable housing properties

Transportation

• Allows for necessary payments to air carriers to maintain essential Air Service Program
• Removes specific earmark language from FY 2026 appropriations
• Rescinds remaining unspent allocations for highway infrastructure and Federal Aviation Administration (FAA) research and development
• Does not extend advanced appropriations through Division J of the Infrastructure Investment and Jobs Act; overall transportation funding would be significantly cut unless new appropriations are made

Energy & Environment

• Allows for necessary spending to maintain the planned launch schedule for the National Oceanic and Atmospheric Administration (NOAA) weather satellite system (GeoXO)
• Allows for necessary spending to continue atomic energy environmental cleanup
• Allows for necessary spending to support wildfire management and suppression activities
• Allows for necessary spending for the Federal Emergency Management Agency (FEMA) Disaster Relief Fund to comply with the Robert T. Stafford Disaster Relief and Emergency Assistance Act
• Extends the National Flood Insurance Program until Dec. 11

Finance

• Allows for necessary spending to accommodate increased demand for the Small Business Administration loans program
• Blocks the proposed OMB Rule rewrite on Uniform Guidance which governs grant administration for all federal grants

Indian Affairs

• Allocates $75,774,000 to Indian Health Services (IHS) and $8,296,000 to Indian Health Facilities to support staffing and operating costs for recently opened or renovated IHS facilities
• Makes sufficient funds available for the Office of Navajo and Hopi Indian Relocation program to ensure its completion

Government Operations

• Allows for necessary spending for the Census Bureau to continue preparations for the 2030 Census
• Allocates legal expense funds to the Department of Justice, including for Federal Bureau of Investigation (FBI) salaries in preparation for the 2028 Olympic games
• Allows for necessary spending to pay Department of the Treasury salaries in preparation for the G7 Financial Summit
• Allows for necessary spending to protect federal employees can be protected from furlough, given the agency has already exhausted other administrative cost cuts
• Permits D.C. to spend its own funds for programs and activities according to its FY 2027 budget
• Prevents cost-of-living adjustments for Members of Congress
• Approves payments for the widows of Former Rep. David A. Scott (D-Ga.) and Former Sen. Lindsey O. Graham (R-S.C.)

What’s Still Ahead

The CR process will move quickly following Congress’ August recess. When Congress members return on August 31, they will have just a month before government funding expires on October 1. To pass this CR, the House will need to reconcile any differences between the Senate’s CR and their own CR, passed on July 21, before the bill can move to the president’s desk for a signature.

How Does This Impact Counties?

Counties rely on reliable and timely funding from Congress to properly administer programs and services to their communities. This CR allows for more certainty for counties and their federal funding by avoiding a potential government shutdown.

It also delivers a major win for counties in giving them more time to prepare for the potentially debilitating changes to federal grant administration from the changes to Unform Guidance. Counties can access NACo’s Preparation Guide for the OMB Rule here.

Take Action

• Contact your Representative: Urge them to support adopting the Senate's funding bill language, since the current House CR does not include the OMB delay.
• Stay engaged: Watch NACo's Uniform Guidance resource hub and the Policy Insider newsletter for updates as the CR moves through conference.