A complete substitute amendment. v5 transforms the bill from a narrow extension of the African Growth and Opportunity Act (AGOA) and customs user fees into a comprehensive continuing appropriations act for fiscal year 2027. It also includes numerous other authorizing extensions across various federal programs, including surface transportation and veterans' affairs, fundamentally altering the bill's scope.
Continuing Appropriations and Extensions Act, 2027
- Sponsor
- Rep. Smith, Jason [R-MO-8]
- Committees
- Ways and Means Committee (primary)
- Last action
- Sep 2, 2026
Bottom line
This bill is a short-term measure to prevent a government shutdown and extend critical federal programs, while also embedding specific policy changes and funding adjustments.
What it actually does
This bill, titled the "Continuing Appropriations and Extensions Act, 2027," provides stop-gap funding for most federal government operations at fiscal year 2026 levels until December 11, 2026. It also extends numerous expiring authorizing provisions across various federal agencies, including surface transportation programs, Department of Veterans Affairs programs, and several trade and cybersecurity authorities. Additionally, it includes specific programmatic adjustments, rescissions, and reappropriations for certain agencies.
Proponents argue
Supporters argue this bill is essential to maintain government operations, prevent disruptions to critical services, and provide stability for federal agencies and beneficiaries while Congress works on full-year appropriations. The extensions of various programs ensure continuity for vital services, from veterans' care to surface transportation infrastructure.
Opponents contend
Critics may argue that continuing resolutions are an inefficient way to fund the government, hindering long-term planning and creating uncertainty. Some may object to specific policy riders or funding adjustments included in the bill, arguing they should be debated as standalone legislation rather than being attached to a must-pass funding measure.
Given its length and technical nature, the bill requires significant time for review, which is often compressed during continuing resolution negotiations, making thorough public and legislative scrutiny challenging.
Sec. 101, Division A
Continuing Appropriations for Fiscal Year 2027
This provision funds most federal government operations at the fiscal year 2026 spending levels and conditions. It covers projects and activities that were conducted in FY2026 and for which appropriations were made available in specific FY2026 appropriations Acts. This funding is temporary, lasting until December 11, 2026, or until a full-year appropriation is enacted.
Supporters argue
Ensures government functions without interruption, preventing a shutdown and maintaining essential services for citizens. It provides a bridge to allow more time for comprehensive budget negotiations.
Critics contend
Perpetuates inefficient budgeting practices, prevents agencies from planning long-term, and often leads to last-minute, rushed decisions on spending. It can also be used to push through unrelated policy changes.
Tradeoffs
Balances the need for immediate government funding against the desire for a more deliberative and comprehensive appropriations process.
Sec. 102, Division A
Department of Defense Funding Limitations
This section imposes specific limitations on Department of Defense (DoD) spending under the continuing resolution. It prohibits using funds for new production items not funded in FY2026, increasing production rates above FY2026 levels, or initiating new projects/activities not funded in FY2026. It also restricts initiating multi-year procurements using advance procurement funding.
Sec. 114, Division A
Emergency and Disaster Relief Designations
This section addresses the budgetary treatment of funds designated as emergency requirements or for disaster relief. It states that previous emergency designations for amounts incorporated by reference in this Act shall not apply, but then redesignates these amounts, along with new amounts, as emergency requirements under specific budget resolutions for FY2022 and FY2026/2027. It also redesignates disaster relief funds.
Sec. 125, Division A
Rescission and Reappropriation for Middle Mile Deployment
This provision rescinds remaining unobligated balances from the "Middle Mile Deployment" program under the Infrastructure Investment and Jobs Act (Public Law 117-58) as of September 30, 2026. An equivalent amount of new budget authority is then immediately reappropriated for fiscal year 2026, to remain available until September 30, 2027, for the same purposes. This effectively extends the availability of these funds by one year.
Sec. 126, Division A
Prior Year Shipbuilding Cost Increases for Navy
This section allows the Department of Defense to apportion funds for "Shipbuilding and Conversion, Navy" to cover prior year cost increases for 20 specific shipbuilding programs, ranging from the 2013/2027 Carrier Replacement Program to the 2026/2027 T-AO Fleet Oiler Program. The total amount authorized for these cost increases is substantial, exceeding $2.5 billion. This is an exception to the general CR limitations on new production or increased rates.
Sec. 143, Division A
Additional Funding for Indian Health Service Facilities
This provision provides additional funding for the Indian Health Service (IHS) beyond the general FY2026 continuing rate. Specifically, it allocates an additional $75,774,000 for "Indian Health Services" and $8,296,000 for "Indian Health Facilities" for staffing and operating facilities that were opened, renovated, or expanded in fiscal years 2022, 2026, and 2027.
Sec. 145, Division A
Payments to Widows/Heirs of Deceased Members of Congress
This section appropriates $174,000 each for the widow of David A. Scott, a late Representative from Georgia, and the heir at law of Lindsey O. Graham, a late Senator from South Carolina. These payments are typically made to cover expenses following the death of a sitting member.
Sec. 156, Division A
HUD Flex Sub Loan Program and Rescission
This section repeals Section 239 of Division D of Public Law 119-75, rescinds its unobligated balance, and establishes a new program. The new program, effective for FY2027-2029, allows the Secretary of Housing and Urban Development (HUD) to satisfy the full indebtedness of certain "Flex Sub loans" (financial assistance under 12 U.S.C. 1715z-1a) through competition. Eligible properties must have 1-99 assisted units, a Flex Sub loan balance of $1.5M+, non-profit ownership, and high REAC/management scores. It appropriates $6,258,174.91 for this purpose and rescinds $4,258,174.91 from prior year unobligated balances in Treasury Appropriations Fund Symbol 86 X 0303.
Sec. 157, Division A
Prohibition on Uniform Guidance Rule Finalization
This section prohibits the issuance or finalization of a rule to revise the "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (commonly known as the "Uniform Guidance") through December 11, 2026. This includes a specific proposed rulemaking published on May 29, 2026, or any substantially similar rule. If such a rule was finalized before this Act's enactment, it would not take effect until after December 11, 2026.
Sec. 2008, Division B
African Growth and Opportunity Act (AGOA) Extension
This section extends the African Growth and Opportunity Act (AGOA) by two years, from 2026 to 2028. This includes extending the general authority, the regional apparel article program, and the third-country fabric program, which provide duty-free treatment for eligible products from qualifying sub-Saharan African countries.
Sec. 2010, Division B
Extension of Customs User Fees
This section extends the authority to collect customs user fees. Specifically, it amends the Consolidated Omnibus Budget Reconciliation Act of 1985 and the United States-Korea Free Trade Agreement Implementation Act to change the termination date for these fees from December 31, 2031, to March 31, 2032. This provides a three-month extension.
Sec. 2018, Division B
Budgetary Effects (PAYGO Exemption)
This section explicitly exempts the budgetary effects of Division B and all succeeding divisions (C and D) from being entered on statutory PAYGO scorecards and Senate PAYGO scorecards. It also specifies that these effects shall not be estimated for purposes of section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 or for appropriations committee allocations.
Sec. 3101, Division C
Extension of Federal Surface Transportation Programs
This section extends federal surface transportation programs, including those authorized under the Infrastructure Investment and Jobs Act and other prior laws, through December 11, 2026. It authorizes appropriations from the Highway Account and Mass Transit Account of the Highway Trust Fund, and from the General Fund, for fiscal year 2027 at a pro-rated amount (the "extension fraction") based on the FY2026 levels. It also applies a pro-rated obligation limitation.
Sec. 3201, Division C
Extension of Expenditure Authority for Trust Funds
This section extends the authority for expenditures from the Highway Trust Fund, the Sport Fish Restoration and Boating Trust Fund, and the Leaking Underground Storage Tank Trust Fund. For all three, it changes the expenditure termination date from October 1, 2026, to December 12, 2026. This ensures that funds can continue to be disbursed from these dedicated accounts for their intended purposes during the extension period.
Sec. 4101, Division D
Extension of VA Copayment Authority
This section extends the authority for the Department of Veterans Affairs (VA) to collect copayments for hospital care and nursing home care. It amends title 38, United States Code, by striking "September 30, 2026" and inserting "December 11, 2026," thereby extending the authority by 72 days.
Sec. 4103, Division D
Extension of Funding for Rural Access Network for Growth Enhancement (RANGE) Program
This section extends funding for the Sgt. Ketchum Rural Veterans Mental Health Act of 2021, which supports the RANGE program. It provides an additional $236,713 for the period beginning October 1, 2026, and ending December 11, 2026, to carry out the program, prorated from the previous annual allocation of $1,200,000.
Sec. 4304, Division D
Extension of Funding for Supportive Services for Very Low-Income Veteran Families in Permanent Housing
This section provides an additional $130,191,781 for the period beginning October 1, 2026, and ending December 11, 2026, to fund supportive services for very low-income veteran families in permanent housing. This is a significant pro-rated allocation to ensure continuity of this critical housing assistance program.
These clauses list specific sections of prior appropriations acts that are excepted from the general continuing appropriations. For example, Sec. 101(2) excepts sections 521(c)(2) and 544 from the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2026.
Sec. 101(2), (5), (6), (7), (8), Division A
Why it matters:This is standard legislative practice for continuing resolutions to make specific adjustments to prior law without explicitly rewriting the provisions. It's not necessarily evasive but requires high technical literacy.
Case for: Allows for targeted adjustments to funding or policy that may be necessary due to changing circumstances or specific legislative agreements, even within a broad CR.
Case against: Makes it difficult for the public and even many lawmakers to quickly grasp the full scope of changes, as it requires cross-referencing multiple complex prior laws.
Estimated impact: Varies widely depending on the specific excepted sections, potentially impacting specific programs or agencies by either halting or modifying their funding/authority.
This section details how rescissions or cancellations of discretionary budget authority from prior acts are to be continued under the CR. It specifies that they continue by reducing the rate for operations of applicable Treasury Appropriations Fund Symbols (TAFS) and sets the amount of continuation to the lesser of the specified amount or available balances. It also requires OMB to provide a comprehensive list of continuing rescissions.
Sec. 115, Division A
Why it matters:This is a technical accounting and budget management provision, common in CRs to ensure prior rescissions are properly carried forward. It's standard practice.
Case for: Ensures fiscal discipline by continuing previously enacted rescissions, preventing funds from being spent that Congress intended to cancel.
Case against: The complexity makes it hard to track the actual impact of these continuing rescissions on specific programs or agencies.
Estimated impact: Potentially significant, as it governs the continuation of all prior rescissions under the CR.
This section amends Section 747 of Division E of Public Law 119-75 by changing several fiscal years referenced within it from "2025" to "2026", "2026" to "2027", and "2027" to "2028". It also updates a cross-reference to prior law. Without the text of the original Section 747, the specific impact is unclear, but it suggests a multi-year extension or modification of a program or authority.
Sec. 136, Division A
Why it matters:This is a common method for extending or updating provisions from prior appropriations acts without reprinting the entire text, often used for technical or administrative authorities.
Case for: Efficiently updates and extends existing statutory language without creating unnecessary bulk in the current bill.
Case against: Obscures the specific policy being extended or modified, requiring significant effort to trace the full legislative history and understand the current effect.
Estimated impact: Cannot be determined without the text of the original Section 747, but likely extends a program or authority by one year.
This section explicitly strikes specific language (provisos and clauses) from Title I of Division D of Public Law 119-75, which is the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026. These struck provisions relate to various Federal Aviation Administration, Federal Highway Administration, Federal Railroad Administration, Federal Transit Administration, and National Highway Traffic Safety Administration programs.
Sec. 148, Division A
Why it matters:This is a legislative tactic to remove specific restrictions or directives from prior law without drawing explicit attention to each removal, often done to streamline or alter policy quietly.
Case for: May remove outdated, unworkable, or politically contentious provisos that were hindering program implementation or flexibility.
Case against: Undermines transparency by making significant policy changes through negative references to prior law, potentially removing important oversight or funding conditions without public debate.
Estimated impact: Potentially significant, as it removes specific conditions or allocations from major transportation programs.