The United States will not face a government shutdown when the new fiscal year begins on October 1. President Donald Trump signed a stopgap spending bill on Wednesday, September 2, a day after the House of Representatives approved it with support from Democrats who broke with their leaders.
What the bill does
The measure, a continuing resolution known as the Continuing Appropriations and Extensions Act, 2027, keeps federal agencies funded at current levels through December 11, 2026. That pushes the next funding deadline past the November 3 midterm elections. The bill also:
- extends surface transportation and veterans’ programmes that were due to lapse;
- delays for 30 days a ban on certain hemp products that Congress had previously approved;
- limits the administration’s ability to take tighter control of how federal grants are awarded.
How it passed
The Senate approved the bipartisan bill in August. In the House, leaders brought it up under a fast-track procedure that requires a two-thirds majority, meaning it could only pass with Democratic votes. Several conservative Republicans objected, criticising both the hemp delay and the grants provision; one complained that the Senate had rewritten the House’s approach.
Why this deadline mattered
Congress has struggled with funding all year. There were two major funding lapses in 2026, both rooted in a dispute over immigration enforcement and whether lawmakers should restrict federal immigration agents. Neither party wanted a third shutdown weeks before voters go to the polls.
What comes next
The stopgap buys about ten weeks. House Appropriations Committee Chairman Tom Cole warned that is not enough time to pass all twelve regular spending bills for fiscal 2027, raising the prospect of another short-term extension in December, a full-year stopgap, or a fresh shutdown fight after the election. The outcome of the midterms, and which party controls each chamber next year, will shape how that fight plays out.
For federal workers, contractors and people who depend on government services, the immediate message is simpler: pay, benefits and public services continue as normal through autumn.