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Congress Passes Continuing Resolution to Fund Federal Government Through Fiscal Year 2025

Congress approved a continuing resolution to fund the federal government for fiscal year 2025, successfully averting a government shutdown. The continuing resolution extends government funding through Sept. 30. The House passed the bill on Tuesday by a vote of 217-213, followed by Senate approval on Friday by a vote of 54-46.

While the continuing resolution generally extends funding levels from fiscal year 2024 spending laws, it includes key changes, such as increases for defense spending and immigration enforcement, while reducing some non-defense funding. The measure eliminates all earmarked projects from fiscal 2024 appropriations and omits $15.9 billion in earmarked projects that had been included in the fiscal 2025 House and Senate appropriations bills. Additionally, it rescinds $20.2 billion in IRS funding from the 2022 tax, climate and health law.

We thank Congress for taking action to keep the federal government funded and ensure federal agencies can continue their essential work. As we look ahead to fiscal year 2026, we encourage leaders on both sides of the aisle to work together on long-term funding solutions that provide stability for the critical programs state and local governments rely on."

Jay Nelson
National Director of Federal Affairs
The Council of State Governments

Key Policy Highlights of Interest to States:

  • Supplemental Nutrition Program (WIC):
    Funding would increase by more than $500 million to a total of $7.59 billion.
  • Unemployment Insurance:
    Provides $3.9 billion from the Unemployment Trust Fund for state grants to administer unemployment insurance laws.
  • Housing Programs:
    • Project-based rental assistance funding increases by $480 million.
    • Tenant-based rental assistance receives a $3.6 billion boost.
  • Small Business Administration Disaster Loans:
    Allocates $406 million for loan administration and oversight, including $374 million under a major disaster spending cap adjustment.
  • Health and Human Services:
    Includes advance funding for key programs through the first quarter of fiscal year 2026, ensuring stability for essential services.
    • $261 billion for Medicaid payments to states.
    • $3.6 billion for foster care payments.
    • $1.6 billion for child support enforcement and family support programs.
  • State and Local Law Enforcement:
    Reduce spending levels for state and local law enforcement assistance programs, providing $2 billion for Office of Justice Programs assistance and $417.1 million for the Community Oriented Policing Services (COPS) program.

Extensions of Expiring Health and Other Programs Until Sept. 30:

  • Increase Medicare payments to low-volume hospitals.
  • Extend flexibilities allowing for greater Medicare coverage of telehealth services.
  • Continue funding for the Community Health Center Fund, a primary source of federal support for community health centers.
  • FEMA’s National Flood Insurance Program.
  • Temporary Assistance for Needy Families (TANF) program extension.

The stopgap funding bill does not include proposed cuts to the federal government by Elon Musk’s Department of Government Efficiency. House Speaker Mike Johnson (R-LA) indicated that Republicans will seek to incorporate those cuts into the fiscal year 2026 appropriations process.