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Ahead of the start of fiscal 2027 on Oct. 1, House lawmakers passed a continuing resolution Sept. 1 to extend government funding at current levels through Dec. 11.
The language was identical to what the Senate approved in July.
It avoids any semblance of a repeat of last year, when the federal government shut down for a record 43 days and much of the National Guard’s full-time force went weeks without pay.
However, a CR is just the lessor of two evils. The action caps defense spending at the previous fiscal year’s levels, prohibits “new starts” and bans production rate increases for existing hardware.
Because the Defense Department relies heavily on predictable, forward-looking financial planning, operating under a stopgap funding measure forces the military into a holding pattern, especially when it comes to modernization.
Unfortunately, the practice of government funding by CR is commonplace. Presidential budget requests are often late and Congress no longer seems to be in any hurry to pass appropriations bills on time — not with the easy crutch of a stopgap budget available, say many observers.
From fiscal 2011 through fiscal 2025, 49 CRs affecting the Pentagon were enacted that lasted different lengths of time, according to a Government Accountability Office report published in January.
The problem has only worsened in recent years.
In seven of the past 15 fiscal years, including fiscal 2025, DoD operated under a CR for nearly half of the fiscal year.
A prohibition on new starts is especially hindering. It prevents an agency from beginning or resuming activities and projects that were not available the prior year.
They can also lead to operational challenges, including availability of equipment and logistics support for activities.
“For example, Air Force officials said while they fund the flying hours program — which supports flight training efforts — during CRs, funding levels also affect flight training inputs such as the availability of aircraft, instructor pilots, and training equipment,” the GAO said.
“CRs may affect investments in the training facilities, which can in turn affect the quality of the training and unit readiness,” the report added.
Since fiscal 2010, CRs have included a provision that specifically restricts Pentagon officials from using CR-appropriated amounts “to initiate the new production of items, increase production rates above those sustained in the prior fiscal year, or to initiate multi-year procurements using advance procurement funding for economic order quantity purchases.”
As the report highlights, CRs also increase costs associated with contracts and affect the availability of equipment for training and exercises.
“For example, F-35 program officials GAO surveyed stated that they constantly replan their budget during a CR and estimate that 20% of their financial management staff’s time is spent adjusting their budget to manage through CR constraints,” the GAO reported.
For now, Congress has sidestepped the short-term threat of a shutdown.
However, lawmakers will return after the elections to a packed agenda that includes needing to pass individual appropriations bills, the annual defense policy bill and consideration of several nominees to important defense posts.
—By Jennifer Hickey
