The U.S. House of Representatives passed the Senate-amended "Fiscal Year 2027 Continuing Appropriations Act" with 370 votes in favor and 48 against, extending federal government funding at current levels until December 11, temporarily avoiding a federal government shutdown in early October. The bill has now been sent to President Trump for signing.

The bill was voted on under a fast-track procedure, requiring a two-thirds majority; 193 Republican members, 176 Democratic members, and 1 Independent member supported it, while 19 Republican members and 29 Democratic members opposed it. The Senate passed the bill in August with 90 votes in favor and 6 against.

The current federal funding was set to expire on September 30. This continuing resolution freezes most federal agency spending at current levels, giving Congress about two and a half months to complete the full appropriations bill for FY 2027; if no new agreement is reached by then, the risk of a government shutdown will shift to after December 11.

The Senate version included two provisions that constrain the executive branch: temporarily preventing the White House Office of Management and Budget from implementing a proposed rule that would give political appointees greater power to review or block certain federal appropriations; and limiting the Department of Homeland Security from reallocating funds from other programs to the border patrol.

The bill also extends several programs, including the National Flood Insurance Program, and delays the federal ban on THC products derived from cannabis until December 11; other contentious issues regarding annual appropriations, defense and non-defense budget priorities, border security spending, and administrative funding authorities remain unresolved.

From a market mechanism perspective, the short-term bill reduces the immediate disruptions of a shutdown on federal employee salaries, government procurement, regulatory approvals, defense project payments, and macro data releases; direct beneficiaries include defense, IT, consulting, and engineering suppliers reliant on federal contract cash flow, as well as businesses awaiting regulatory approvals. The pressure has not disappeared but has been postponed until December: continuing resolutions typically limit the initiation of new projects and budget flexibility, making it difficult for government contractors to gain visibility on annual orders.

Source: Public Information