S. 2806: Eliminate Shutdowns Act

This bill, known as the Eliminate Shutdowns Act, aims to prevent government shutdowns by establishing automatic continuing appropriations for federal programs, projects, and activities. Below are key components of what the bill proposes:

Automatic Continuing Appropriations

The bill introduces a mechanism that would automatically allocate necessary funds for federal programs if the regular appropriations are not enacted by the start of a new fiscal year. Specifically:

• The bill defines a lapse in appropriations as a situation where an annual budget bill has not been passed, affecting a program that was funded in the previous year.
• If a lapse occurs, funds will automatically be provided for the continuation of ongoing programs at the same funding level as in the previous fiscal year, ensuring operations can continue without disruption.
• This automatic funding would be available for a period of 14 days initially and can be extended in 14-day increments.

Appropriation Details

The bill outlines that:

• Funding under this act will last until an appropriation bill is enacted or until the current year ends.
• For certain entitlements and mandatory payments, the funding will maintain existing program levels without interruption.
• High-volume funding programs, especially those involving state, foreign, or grant distributions, will have funding levels controlled to avoid premature full distribution before assessing actual fiscal requirements.
• Funds allocated under this act may not be used to start programs that were explicitly denied funding in previous fiscal years.

Restrictions on Transfers and Usage

The bill allows for some flexibility in managing funds:

• Agency heads may transfer limited amounts (up to 5%) of funds between accounts, but only to prioritize higher-needed programs.
• Funding decisions made under this act must follow existing rules regarding apportionment, though there may be slight adjustments to timelines in urgent situations.

Budgetary Effects

The financial implications of this act will be classified as discretionary appropriations for the purpose of the Balanced Budget and Emergency Deficit Control Act. They will be considered temporary funding only for part of the fiscal year, ensuring that they comply with federal spending limits.

Effective Date

If enacted, the provisions of this act would take effect on September 30, 2025.

Relevant Companies

• None found