The federal government’s fiscal year closes Sept. 30, and as of this moment, there is no plan to fund the government through fiscal year 2026. If a funding agreement is not in place by Oct. 1, the federal government will be faced with a shutdown. The U.S. Congress could avoid a shutdown by passing all 12 pending appropriations bills and having the president sign them into law before Sept. 30, but that has not happened since 1996. If a shutdown is to be averted, it will require Congress to pass a continuing resolution, which would extend current funding levels to a specific date, but there are still several factors Congress must consider before it can move forward.

A shutdown would inject even more uncertainty into the economy and would mean that other legislative issues would be stuck in a holding pattern. That would be problematic, because one of the legislative items expected to be considered this fall is a bipartisan tax extenders package that would likely contain an extension, and possible expansion, of the Work Opportunity Tax Credit program currently set to expire at the end of 2025. As of now, the House of Representatives is scheduled to be in session for 14 days during the month of September, and the Senate will be in session for 16 days. Is that enough time to reach an agreement to keep the government open? ASA will keep its members updated.

(Note: ASA Policy Edge is a new content feature designed to keep members ahead of legislative developments that could affect their business.)