Federal shutdown averted, but a budget deal remains elusive

Federal lawmakers avoided a government shutdown just before Thanksgiving by passing a new temporary spending bill. This latest measure differs from past ones in that it separates funding into two buckets. The bill funds some departments through Jan. 19 and others through Feb. 2.

Besides funding the government in the short-term, the measures extended the deadline to reauthorize the farm bill — a Congressional "must-do" — to Sept. 30, 2024. The bill also provided short-term extensions for the Federal Aviation Administration authorization and the National Flood Insurance Program.

This is the second stop-gap funding measure Congress has passed since the federal budget expired on Sept. 30. While Congress has avoided two government shutdowns, legislators have yet to address the underlying policy conflicts and political uncertainty that drove them to the cusp of a shutdown. Although the Senate has found a bipartisan path forward, the House remains split along party lines on key issues, including housing and transportation appropriations.

A government shutdown could adversely affect many cities, with considerable impacts on social safety net programs. For more updates, including which federal programs are funded, visit the National League of Cities’ Federal Budget Tracker webpage.