Eliminate Shutdowns Act

Bill Number: S. 2806
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Economics and Public Finance
Status: Introduced
Latest Action: 2025-09-29: Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to S. 2806 was not invoked (Record Vote No. 533) made in Senate.
Last Updated: 2026-03-12T15:09:20Z

AI-Generated Summary

Purpose

The "Eliminate Shutdowns Act" (S. 2806) aims to prevent government shutdowns by establishing automatic continuing appropriations for federal programs, projects, and activities during periods when full-year funding bills are not enacted on time. This ensures uninterrupted government operations at prior funding levels until new appropriations are passed.

Key Provisions

Automatic Funding Mechanism: If a "lapse in appropriations" occurs (defined as a period where full-year funding has not been enacted for the current fiscal year, but funding existed in the prior year and no continuing resolution is in effect), funding is automatically provided at the rate and under the conditions of the most recent applicable prior appropriation act.
Duration and Extensions: Initial funding lasts for 14 calendar days, with automatic extensions in additional 14-day periods until a new full-year or continuing appropriation is enacted.
Special Rules for Mandatory Programs: For entitlements (automatic payments required by law, like Social Security) and certain activities (e.g., under the Food and Nutrition Act of 2008), funding is provided at levels needed to maintain current law requirements.
Availability and Charging: Funding starts on the first day of a lapse and ends when new appropriations are enacted; expenditures are later charged against those new funds.
Limitations and Exceptions:
No funding for programs explicitly prohibited in the prior year.
Agencies cannot make high initial distributions (e.g., grants to states or others) that would preempt final congressional decisions.
Funding must be the minimal necessary to continue operations.
Does not apply if another law already provides or explicitly blocks funding.
Fund Transfers: Agency heads, with Office of Management and Budget (OMB) approval, can transfer up to 5% of funds between accounts within the same agency, but only for higher-priority needs and not for congressionally denied items. Transfers must be reported to congressional appropriations committees.
Budgetary Treatment: Treats these automatic funds as discretionary (non-mandatory) spending for enforcement of budget caps under the Balanced Budget and Emergency Deficit Control Act of 1985. During lapses, related budget reports are delayed by up to 30 days.

Significant Changes to Existing Law

Amends Subchapter I of Chapter 13 of Title 31, United States Code, by adding a new Section 1311, which introduces automatic continuing resolutions (CRs) without requiring separate congressional action—unlike current law, where lapses lead to shutdowns unless Congress passes a manual CR.
Modifies baseline budget calculations and discretionary spending enforcement to classify automatic funding as "part-year" appropriations, ensuring it counts toward spending limits but does not override full-year caps.
Effective September 30, 2025, this shifts from reactive (manual CRs to avert shutdowns) to proactive (automatic funding) handling of budget delays.

Potential Impacts

On Government Agencies: Ensures seamless continuation of operations, reducing administrative burdens from shutdown preparations (e.g., furloughs). Allows limited flexibility via fund transfers but requires minimal spending to avoid overreach.
On Citizens: Minimizes disruptions to essential services, such as benefit payments, national parks, and federal employee pay, preventing economic and personal hardships from shutdowns.
On International Relations: No direct impacts specified, though stable U.S. government funding could indirectly support consistent foreign aid and diplomatic operations.
Broader Economic Effects: Avoids shutdown-related costs (estimated in billions historically), potentially stabilizing markets and federal contracting.

Main Stakeholders Affected

Federal Agencies and Employees: Benefit from operational continuity but must adhere to prior-year funding levels and transfer limits.
Citizens and Recipients of Federal Services: Protected from interruptions in programs like entitlements, food assistance, and public services.
Congress: Loses some leverage in budget negotiations (e.g., using shutdown threats), but gains predictability; appropriations committees receive transfer notifications.
Office of Management and Budget (OMB): Gains oversight role in approving transfers and implementing the law.
State, Local, and Non-Profit Entities: Affected by delayed or limited grant distributions during lapses.

Notable Legal, Constitutional, or Political Implications

Legal: Aligns with the Antideficiency Act (which prohibits spending beyond appropriations) by providing temporary, limited funding tied to prior laws. Waives only specific time limits on fund apportionment (dividing funds over time) but preserves other budget rules.
Constitutional: Relates to Congress's exclusive power under Article I to control appropriations; the automatic mechanism could be viewed as a self-imposed delegation for short-term continuity, potentially reducing shutdown risks without ceding long-term control.
Political: Neutralizes shutdowns as a tool in partisan budget disputes, promoting stability but possibly encouraging delays in full-year appropriations. Treats automatic funds as discretionary to avoid inflating mandatory spending baselines, maintaining fiscal discipline under existing budget laws.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Johnson, Ron [R-WI]

Cosponsors (3)

Sen. Lee, Mike [R-UT], Sen. Scott, Rick [R-FL], Sen. Moody, Ashley [R-FL]

Recent Actions

2025-09-29: Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to S. 2806 was not invoked (Record Vote No. 533) made in Senate.
2025-09-29: Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 37 - 61. Record Vote Number: 533. (CR S6824-6825) (Roll call 533)
2025-09-19: Cloture motion on the motion to proceed to the measure presented in Senate. (CR S6799)
2025-09-19: Motion to proceed to consideration of measure made in Senate. (CR S6799)
2025-09-16: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 161.
2025-09-15: Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
2025-09-15: Introduced in Senate

Bill Versions

Eliminate Shutdowns Act — issued 2025-09-16 — PDF (10 pages)