PolicyBrief
H.R. 5542
119th CongressSep 23rd 2025
End Government Shutdowns Act
IN COMMITTEE

This Act automatically funds government operations at a gradually decreasing rate if Congress fails to pass necessary budget bills by the start of the fiscal year.

Garland "Andy" Barr
R

Garland "Andy" Barr

Representative

KY-6

LEGISLATION

End Government Shutdowns Act: Automatic Funding Starts at 99%, Cuts 1% Every 30 Days Until Budget Passed

If you’re tired of hearing about government shutdowns every year and wondering if your tax dollars are still processing that passport renewal, this bill is for you. The End Government Shutdowns Act creates an automatic funding mechanism designed to keep the lights on and the doors open whenever Congress misses the budget deadline. Essentially, if a regular budget or continuing resolution isn't signed into law by the start of the fiscal year, this plan kicks in and automatically funds every federal program, project, and activity that was funded the previous year.

The 99% Solution and the Slow Squeeze

This isn't a free pass, though. When the automatic funding starts, the initial operating rate for agencies is capped at 99 percent of what they received the year before (Section 2). So, right out of the gate, every agency is running on a slight budget cut. This is a smart move aimed at preventing Congress from just coasting on the automatic funding forever—it creates immediate financial pressure to get the real budget done.

But the real kicker is the gradual spending reduction (Section 2). If the budget standoff drags on, the operating rate drops by 1 percentage point after the first 30 days. Then, for every 30-day period after that, it drops another 1 percent. These cuts are mandatory and keep happening until a proper budget is passed. Think of it like a slow, steady austerity program that ratchets up the pain the longer politicians argue. For a busy person, this means the IRS might start processing refunds slower, or the National Weather Service might delay maintenance on a key radar system after a few months of impasse.

What the Cuts Mean for Real Life

While the main benefit here is that federal employees won't be furloughed and essential services like air traffic control won't stop, the automatic cuts introduce a different kind of problem. A 1% cut might sound minor, but if the budget impasse lasts 120 days, agencies are operating at 96% of the previous year's funding. For an agency running a grant program, that might mean four fewer grants awarded. For a military base, it might mean delaying necessary equipment upgrades or maintenance contracts. If you’re a small business owner relying on a government contract, that 4% reduction could mean your contract gets trimmed or postponed.

This mechanism effectively trades the immediate, dramatic crisis of a full shutdown for a slow-motion degradation of government services. The bill forces Congress to feel the heat by making the government less effective over time. The longer they wait, the more services suffer, and the more pressure builds from the public who notice the slowdowns. This bill ensures the government doesn't stop, but it certainly makes it less comfortable to run on autopilot, which is exactly the point: to make sure Congress feels the cost of its inaction without completely crashing the system.