Congress has taken action to avoid a federal government shutdown and provide additional time to address proposed changes to federal grant administration.

On September 1, the U.S. House of Representatives passed the Senate’s Continuing Resolution (H.R. 6500) by a vote of 370–48. The bill now heads to the President for signature.

The legislation would extend federal government funding through December 11, 2026, or until Congress enacts the FY 2027 appropriations bills, whichever comes first. Most federal programs would continue at FY 2026 funding levels during this period.

What This Means for Special Districts

For special districts that rely on federal grants and programs, the CR provides important short-term certainty and helps prevent disruptions that could result from a government shutdown.

Of particular importance to special districts is the provision delaying implementation of the proposed Office of Management and Budget (OMB) changes to Uniform Guidance until December 11. Uniform Guidance establishes many of the rules and requirements governing how federal grants are administered, including requirements related to financial management, procurement, reporting and audits.

The additional time gives Congress, federal agencies and grant recipients an opportunity to further evaluate the proposed changes and their potential impact on local governments, including special districts.

The CR also maintains funding and operations for a number of programs relevant to special districts, including FEMA disaster relief, wildfire management and suppression, the National Flood Insurance Program, NOAA weather programs, transportation programs and other federal initiatives.

NSDA will continue monitoring the FY 2027 appropriations process and the OMB Uniform Guidance rule and will keep special district leaders informed as additional developments occur.

The CR provides a temporary bridge through December 11, avoids an immediate shutdown, and gives special districts and other federal grant recipients additional time to prepare for and weigh in on changes to federal grant administration.