A CR bill, or continuing resolution, is a temporary funding measure that Congress can use to fund the federal government for a limited amount of time when final appropriations have not been approved by Congress and the President. Without final appropriations or a CR, there could be a lapse in funding that results in a government shutdown. CRs generally continue the level of funding from the prior year’s appropriations or the previously approved CR from the current year. Full-year CRs provide appropriations for the remainder of the fiscal year and are functionally similar to final appropriations. A CR can include changes from the prior year’s budget that could alter the rate at which funds are utilized, extend an expiring program authority, or provide a specific dollar amount of funding to a program during the CR.
CRs limit the ability of federal agencies to initiate new programs and hiring and add administrative burdens. They also make it harder for agencies to plan in the long and short run, start new programs or activities, or sign new contracts. Senior Defense officials have testified that a continuing resolution has a negative impact on readiness because of its temporary nature. The Fiscal Responsibility Act disincentivizes Congress from enacting a chain of CRs each year by forcing an automatic overall 1% cut if a stopgap is still in place come Jan. 1, 2024. However, the automatic cuts would not be enforced until April via sequestration order.
