Federal Funding Gaps: A Brief Overview
Jessica Tollestrup
Analyst on Congress and the Legislative Process
April 20, 2011
Congressional Research Service
7-5700
www.crs.gov
RS20348
CRS Report for Congress
P
repared for Members and Committees of Congress
Federal Funding Gaps: A Brief Overview
Summary
The Antideficiency Act (31 U.S.C. 1341-1342, 1511-1519) generally bars the obligation of funds
in the absence of appropriations. Exceptions are made under the act, including for activities
involving “the safety of human life or the protection of property.” The interval during the fiscal
year when appropriations for a particular project or activity are not enacted into law, either in the
form of a regular appropriations act or a continuing resolution (CR), is referred to as a funding
gap. Although funding gaps may occur at the start of the fiscal year, they also may occur any time
a CR expires and another CR (or the regular appropriations bill) is not enacted immediately
thereafter. Multiple funding gaps may occur within a fiscal year.
When a funding gap occurs, federal agencies begin a shutdown of the affected projects and
activities, which includes the prompt furlough of non-excepted personnel. The general practice of
the federal government after the shutdown has ended has been to pay furloughed employees for
time missed, even when no work was performed.
Although a shutdown may be the result of a funding gap, the two events should be distinguished.
This is because a funding gap may result in a total shutdown of all affected projects or activities
in some instances, but not others. For example, when funding gaps are of a short duration,
agencies may not have enough time to complete a shutdown of affected projects and activities
before funding is restored. In addition, the Office of Management and Budget has previously
indicated that a shutdown of agency operations within the first day of the funding gap may be
postponed if a resolution appears to be imminent.
During the 35 fiscal years between FY1977-FY2011, 17 funding gaps occurred, ranging in
duration from one day to 21 full days. About half of these funding gaps were brief (i.e., three days
or less in duration). Of these, most occurred over a weekend, and the disruption in federal
operations was minimal.
Almost all of the funding gaps occurred during the first half of the 35 fiscal year period between
FY1977 and FY2011. During the 18 fiscal year period covering FY1977-FY1994, 15 funding
gaps occurred. However, only two funding gaps occurred during the remaining 17 years, covering
FY1993-FY2011.
The most controversial funding gaps since FY1977 occurred in late 1995 and early 1996, when
President Bill Clinton and the Republican-controlled Congress engaged in difficult and protracted
negotiations over budget policy, resulting in the veto of a continuing resolution and several
regular appropriations acts for FY1996. Two funding gaps, amounting to five days and 21 days,
ensued leading to the initial furlough of about 800,000 federal employees.
As of the date of this report, there have been no funding gaps since the two that occurred during
FY1996.
This report will be updated as events warrant.
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Federal Funding Gaps: A Brief Overview
Contents
Background ................................................................................................................................ 1
Funding Gaps: FY1977-FY2011 ................................................................................................. 2
Tables
Table 1. Appropriations Funding Gaps: FY1977-FY2011 ............................................................ 3
Contacts
Author Contact Information ........................................................................................................ 6
Acknowledgments ...................................................................................................................... 6
Congressional Research Service
Federal Funding Gaps: A Brief Overview
Background
The routine activities of most federal agencies are funded annually by one or more of the regular
appropriations acts. When action on the regular appropriations acts is delayed, a continuing
appropriations act, also sometimes referred to as a continuing resolution or CR, is used to provide
interim budget authority. Measures providing continuing appropriations usually take the form of a
joint resolution, rather than a bill.1
During the 60-fiscal-year period covering FY1952-FY2011, all of the regular appropriations acts
were enacted on time in only four instances (FY1977, FY1989, FY1995, and FY1997). No CRs
were enacted for three of these fiscal years, but CRs were enacted for FY1977 to fund certain
unauthorized programs whose funding had been dropped from the regular appropriations acts.2
Further, no CRs were enacted for FY1953, even though all but one of the regular appropriations
were enacted late.3
The Antideficiency Act (31 U.S.C. 1341-1342, 1511-1519) generally bars the obligation or
expenditure of federal funds in the absence of appropriations.4 Exceptions are made under the act,
including for activities involving “the safety of human life or the protection of property.”5 The
interval during the fiscal year when appropriations for a particular project or activity are not
enacted into law, either in the form of a regular appropriations act or a CR, is referred to as a
funding gap.6 Although funding gaps may occur at the start of the fiscal year, they also may occur
any time a CR expires, and another CR (or the relevant regular appropriations bill) is not enacted
immediately thereafter. Multiple funding gaps may occur within a fiscal year.
In 1980 and 1981, Attorney General Benjamin Civiletti issued opinions clarifying the need for the
federal government to begin terminating regular activities upon the occurrence of a funding gap.7
Consequently, when a funding gap occurs, federal agencies begin a shutdown of the affected
projects and activities, which includes the prompt furlough of non-excepted personnel. The
1 For a discussion of continuing resolutions generally, see CRS Report RL30343, Continuing Resolutions: Latest
Action and Brief Overview of Recent Practices, by Sandy Streeter.
2 P.L. 94-473 made continuing appropriations through March 31, 1977. P.L. 95-16 extended the date of the budget
authority contained within P.L. 94-473 through April 30, 1977.
3 Section 1414 of P.L. 82-547 (66 Stat. 661) made regular appropriations enacted late available as of July 1, 1952 (the
first day of FY1953) and ratified any obligations incurred before their enactment.
4 The Antideficiency Act is discussed in CRS Report RL30795, General Management Laws: A Compendium, by
Clinton T. Brass et al. In addition, the Government Accountability Office provides information about the act online at
http://www.gao.gov/ada/antideficiency.htm.
5 See 31 U.S.C. §1342.
6 In most cases, funding provided in regular appropriations acts is available to be obligated only in a single fiscal year,
so that in the event that no subsequent budget authority is provided, agencies may not enter into further obligations. In
these instances, budget authority that had previously been enacted and available for obligation for longer periods (e.g.,
multi-year or “no-year” appropriations) would generally remain available. For further information on multi-year and
no-year appropriations, see CRS Report RS20441, Advance Appropriations, Forward Funding, and Advance Funding,
by Sandy Streeter.
7 The text of the opinions is included in Table 1 IV and Appendix VIII to then General Accounting Office (now
Government Accountability Office) report PAD-81-31, Funding Gaps Jeopardize Federal Government Operations,
March 3, 1981.
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Federal Funding Gaps: A Brief Overview
general practice of the federal government after the shutdown has ended has been to pay
furloughed employees for time missed, even when no work was performed. 8
Although a shutdown may be the result of a funding gap, the two events should be distinguished.
This is because a funding gap may result in a total shutdown of all affected projects or activities
in some instances, but not in others. For example, when a funding gap is of a short duration,
agencies may not have enough time to complete a shutdown of affected projects and activities
before funding is restored. In addition, the Office of Management and Budget has previously
indicated that a shutdown of agency operations within the first day of a funding gap may be
postponed if it appears that an additional CR or regular appropriations is likely to be enacted that
same day.9
To avoid funding gaps and their unwanted consequences, proposals have previously been offered
to establish an “automatic continuing resolution” (ACR) that would provide a fallback source of
funding for activities, at a specified formula or level, in the event the timely enactment of
appropriations is disrupted.10 The funding would become available automatically and remain
available as long as needed so that a funding gap would not occur. Although the House and
Senate have considered ACR proposals in the past, none have been enacted into law.
Funding Gaps: FY1977-FY2011
As illustrated in Table 1, there were 17 funding gaps during the 35-fiscal-year period beginning
with FY197711 and continuing through FY2011. The enactment of a CR on the day after the
budget authority in the previous CR expired, which has occurred often, is not counted as
involving a funding gap. During the past 12 fiscal years (covering FY2000-FY2011), for
example, “next-day” CRs were enacted 17 times.
Almost all of the funding gaps occurred during the first half of the 35-fiscal-year period. During
the 18-fiscal-year period covering FY1977-FY1994, 15 funding gaps occurred. However, only
two funding gaps occurred during the remaining 17 fiscal years, covering FY1995-FY2011.
Multiple funding gaps during a single fiscal year occurred in four instances: (1) three gaps
covering a total of 28 days in FY1978; (2) two gaps covering a total of four days in FY1983; (3)
two gaps covering a total of three days in FY1985; and (4) two gaps covering a total of 26 days in
FY1996.
8 For a discussion of federal government shutdowns, see CRS Report RL34680, Shutdown of the Federal Government:
Causes, Processes, and Effects, by Clinton T. Brass.
9 See, for example, Executive Office of the President, Office of Management and Budget, “Planning for Agency
Operations During a Lapse in Government Funding,” memorandum from Jacob J. Lew, director of Office of
Management and Budget, M-11-13, April 7, 2011, p. 3 and Executive Office of the President, Office of Management
and Budget, “Anticipated Enactment of a Continuing Resolution,” memorandum from Jacob J. Lew, director of Office
of Management and Budget, M-11-14, April 8, 2011.
10 For more information on this topic, see CRS Report RL30339, Preventing Federal Government Shutdowns:
Proposals for an Automatic Continuing Resolution, by Robert Keith.
11 FY1977 marked the first full implementation of the congressional budget process established by the Congressional
Budget Act of 1974, which moved the beginning of the fiscal year to October 1.
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Federal Funding Gaps: A Brief Overview
Table 1. Appropriations Funding Gaps: FY1977-FY2011
Final Date of Budget
Fiscal Year
Authoritya
Full Day(s) of Gapsb
Date Gap Terminatedc
1977 Thursday,
09/30/76
10 Monday,
10/11/76
Friday, 09/30/77
12
Thursday, 10/13/77
1978
Monday, 10/31/77
8
Wednesday, 11/09/77
Wednesday, 11/30/77
8
Friday, 12/09/77
1979
Saturday, 09/30/78
17
Wednesday, 10/18/78
1980
Sunday, 09/30/79
11
Friday, 10/12/79
1981 —
—
—
1982
Friday, 11/20/81
2
Monday, 11/23/81
Thursday, 09/30/82
1
Saturday, 10/02/82
1983
Friday, 12/17/82
3
Tuesday, 12/21/82
1984 Thursday,
11/10/83
3
Monday,
11/14/83
Sunday, 09/30/84
2
Wednesday, 10/03/84
1985
Wednesday, 10/03/84
1
Friday, 10/05/84
1986 —
—
—
1987 Thursday,
10/16/86
1
Saturday,
10/18/86
1988
Friday, 12/18/87
1
Sunday, 12/20/87
1989 —
—
—
1990 —
—
—
1991
Friday, 10/05/90
3
Tuesday, 10/09/90
1992 —
—
—
1993 —
—
—
1994 —
—
—
1995 —
—
—
Monday, 11/13/95
5
Sunday, 11/19/95
1996
Friday, 12/15/95
21
Saturday, 01/06/96
1997 —
—
—
1998 —
—
—
1999 —
—
—
2000 —
—
—
2001 —
—
—
2002 —
—
—
2003 —
—
—
2004 —
—
—
2005 —
—
—
2006 —
—
—
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Federal Funding Gaps: A Brief Overview
Final Date of Budget
Fiscal Year
Authoritya
Full Day(s) of Gapsb
Date Gap Terminatedc
2007 —
—
—
2008
—
—
—
2009 —
—
—
2010 —
—
—
2011 —
—
—
Source: Compiled by CRS with data from the Legislative Information System of the U.S. Congress.
a. Budget authority expired at the end of the date indicated. For example, for the first FY1996 funding gap,
budget authority expired at the end of the day on Monday, November 13, 1995, and the funding gap of five
full days commenced on Tuesday, November 14, 1995. The enactment of a CR on the day after the
previous CR expired, which has occurred often, is not counted as involving a funding gap.
b. Full days are counted as beginning after the final day on which budget authority was available, and ending the
day before the gap terminated. For example, for the first FY1996 funding gap, the ful days of the gap were
from November 14, 1995, through November 18,1995, for a total of five ful days.
c. Gap terminated due to the enactment of a continuing resolution, or one or more regular appropriations
acts.
Six of the funding gaps commenced with the beginning of the fiscal year on October 1. The
remaining 11 funding gaps occurred at least several days after the fiscal year had begun. Nine of
the funding gaps ended in October, four ended in November, three ended in December, and one
ended in January.12
Funding gaps ranged in duration from one to 21 full days. Six of the seven lengthiest funding
gaps, lasting between 8 and 17 days, occurred between FY1977 and FY1980, before the Civiletti
opinions were issued. After the issuance of these opinions, the duration of funding gaps in general
shortened considerably, typically ranging from one to three days. Of these, most occurred over a
weekend and the disruption in federal operations was minimal.
An important exception to this trend was in late 1995 and early 1996, during the two most recent
funding gaps that occurred between November 13-19, 1995, and December 15, 1995, through
January 6, 1996. In the lead-up to the first funding gap, only three out of the 13 yearly
appropriations acts had been signed into law13 and budget authority, which had been provided by
12 The enactment of a series of continuing resolutions for a fiscal year is discussed in CRS Report RL32614, Duration
of Continuing Resolutions in Recent Years, by Jessica Tollestrup.
13 The Military Construction Appropriations Act, H.R. 1817 (P.L. 104-32), was enacted on October 3, 1995. The
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, H.R. 1976
(P.L. 104-37), was enacted on October 21, 1995. The Energy and Water Development Appropriations Act, H.R. 1905
(P.L. 104-46), was enacted on November 13, 1995. The Legislative Branch Appropriations Act, H.R. 1854 (104th
Cong.) was vetoed on October 12, 1995. As of the end of the day on November 13, 1995, the ten regular appropriations
bills that had yet to be enacted were the (1) Department of Transportation and Related Agencies Appropriations Act,
(2) Treasury, Postal Service, and General Government Appropriations Act, (3) Legislative Branch Appropriations Act,
(4) Department of Defense Appropriations Act, (5) Department of Interior and Related Agencies Appropriations Act,
(6) Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations
Act, (7) Department of Commerce and Related Agencies Appropriations Act, (8) Foreign Operations, Export
Financing, and Related Programs Appropriations Act, (9) Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, and (10) District of Columbia Appropriations Act.
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Federal Funding Gaps: A Brief Overview
a CR14 since the start of the fiscal year, expired at the end of the day on November 13. On this
same day, President Clinton vetoed a CR15 that would have extended budget authority through
December 1, 1995, because of the Medicare premium increases contained within the measure.16
The ensuing funding gap resulted in the furlough of an estimated 800,000 federal workers. After
five days, a deal was reached to end the shutdown and extend funding via two CRs through
December 15.17 Agencies that had been zeroed out in pending appropriations bills were funded at
a rate of 75% of FY1995 budget authority. All other agencies were funded at the lower of the
House- or Senate-passed level of funding contained in the FY1996 full-year appropriations bills.
The CR additionally contained an agreement between President Clinton and Congress regarding
future negotiations to lower the budget deficit within seven years.18
During the first and prior to the second FY1996 funding gap, an additional four annual
appropriations measures were enacted, and three others were vetoed.19 The negotiations on the six
remaining bills were unsuccessful before the budget authority contained within the CR expired at
the end of the day on December 15, 1995.20 Roughly 280,000 executive branch employees were
furloughed during the funding gap between December 15, 1995, and January 6, 1996,
government contractors were reportedly laid off, and the delivery of government services to the
public was delayed.21 A CR to provide benefits for veterans and welfare recipients and to keep the
District of Columbia government operating was passed and signed into law on December 22,
1995.22 The shutdown officially ended on January 6, 1996, when the first of a series of CRs to
reopen federal government and provide budget authority through January 26, 1996,23 was
enacted.24
14 H.J.Res. 108 (P.L. 104-31).
15 H.J.Res. 115 (1044th Cong.).
16 Message to the House of Representatives Returning Without Approval Continuing Resolution Legislation,”
November 13, 1995, William J. Clinton, Public Papers of the Presidents of the United States, 1995, Book 2, July 1 to
December 31, 1995, p. 1755. See also “Clinton Vetoes Stopgap Bill to Keep Federal Government Open,” CQ Today,
November 14, 1995.
17 H.J.Res. 123 (P.L. 104-54), H.J.Res. 122 (P.L. 104-56).
18 For a summary of the first FY1996 funding gap and government shutdown, see “Overview: Government Shuts Down
Twice Due to Lack of Funding,” Congressional Quarterly Almanac, 104th Cong., 1st sess. (1995), vol. LI, pp. 11-3
through 11-6; “Special Report – Budget Showdown: Day by Day,” CQ Weekly, November 18, 1995.
19 The Department of Transportation and Related Agencies Appropriations Act, H.R. 2002 (P.L. 104-50), was enacted
on November 15, 1995. The Treasury, Postal Service, and General Government Appropriations Act, H.R. 2020 (P.L.
104-52), was enacted on November 19, 1995. The Legislative Branch Appropriations Act, H.R. 2492 (P.L. 104-53) was
enacted on November 19, 1995. The Department of Defense Appropriations Act, H.R. 2126 (P.L. 104-61), was enacted
on December 1, 1995. The Department of Interior and Related Agencies Appropriations Act, H.R. 1977 (104th Cong.),
was vetoed on December 18, 1995. The Department of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, H.R. 2099 (104th Cong.), was vetoed on December 18, 1995. The
Department of Commerce and Related Agencies Appropriations Act, H.R. 2076 (104th Cong.), was vetoed on
December 19, 1995.
20 As of the end of the day on December 15, 1995, the six regular appropriations bills that had yet to be enacted were
the (1) Department of Interior and Related Agencies Appropriations Act, (2) Department of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, (3) Department of Commerce and
Related Agencies Appropriations Act, (4) Foreign Operations, Export Financing, and Related Programs Appropriations
Act, (5) Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act,
and (6) District of Columbia Appropriations Act.
21 For further information on the effects of the second FY1996 funding gap, see Dan Moran and Stephen Barr, “When
Shutdown Hit Home Ports, GOP Cutters Trimmed Their Sails,” Washington Post, January 8, 1996.
22 H.J.Res. 136 (P.L. 104-69).
23 H.J.Res. 134 (P.L. 104-94). H.R. 1358 (P.L. 104-91) and H.R. 1643 (P.L. 104-92) were also enacted on January 6.
(continued...)
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Federal Funding Gaps: A Brief Overview
As of the date of this report, there have been no funding gaps since the two that occurred during
FY1996.
Author Contact Information
Jessica Tollestrup
Analyst on Congress and the Legislative Process
jtollestrup@crs.loc.gov, 7-0941
Acknowledgments
The original version of this report was written by Robert Keith, formerly a Specialist in American National
Government at CRS. The listed author has revised and updated this report and is available to respond to
inquiries on the subject.
(...continued)
These two CRs provided budget authority for some federal government activities until the end of FY1996.
24 For a summary of the second FY1996 funding gap and government shutdown, see “Overview: Government Shuts
down Twice Due to Lack of Funding,” Congressional Quarterly Almanac, 104th Cong., 1st sess. (1995), vol. LI, pp. 11-
3 through 11-6; “Funding Expires Again in Budget Stalemate.” CQ Weekly, December 23, 1995; “Congress Clears
Bills to Reopen Government,” CQ Today, January 8, 1996.
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