PolicyBrief
S. 499
119th CongressFeb 10th 2025
Government Shutdown Prevention Act of 2025
IN COMMITTEE

Automatically funds government programs at a reduced rate when Congress fails to pass a budget, preventing government shutdowns.

Rand Paul
R

Rand Paul

Senator

KY

LEGISLATION

Automatic Funding Kicks In If Congress Can't Pass a Budget: The Government Shutdown Prevention Act of 2025

The Government Shutdown Prevention Act of 2025 is designed to do exactly what it says: keep the government running even if Congress can't agree on a budget by the start of the fiscal year (October 1st). Instead of shutting down, most programs would keep getting money automatically—but there's a catch.

Funding on Autopilot—With a Catch

This bill automatically continues funding for any program that had money in the previous year. Think of it like hitting 'repeat' on last year's budget. But, and this is important, it does so at a reduced rate. Programs start at 94% of their previous funding, and that amount drops by 1% every 90 days the automatic funding is in effect (Section 2, amending 31 U.S.C. 1311). So, while the lights stay on, agencies will feel the pinch over time.

  • Example: Imagine a local community center that received $100,000 last year. Under this Act, they'd initially get $94,000. If the budget impasse drags on for six months, they're looking at closer to $92,000, impacting services and potentially staffing.

Who's Protected, Who's Squeezed?

  • The Good News: Essential programs like Social Security, Medicare, and food assistance (under the Food and Nutrition Act of 2008) are fully protected. Their funding continues at the levels needed to maintain current services (Section 2).
  • The Not-So-Good News: Other programs, from national parks to scientific research, could see their budgets shrink the longer Congress stalls. This could mean reduced services, delayed projects, or even layoffs.

The Fine Print: Spending Restrictions

The bill also puts some limits on how agencies can spend this 'automatic' money. They can't blow it all at once, especially if they give out grants to states or other organizations (Section 2). This is to prevent agencies from front-loading spending and potentially leaving themselves short later on.

  • Example: A federal agency that funds state-level environmental projects can't award all its grants in the first month. They have to pace themselves, which could delay projects on the ground.

The Big Picture: A Double-Edged Sword

This bill is a mixed bag. It prevents the chaos of a shutdown—no closed offices, no interrupted services, no furloughed workers. But the automatic funding cuts create pressure, and potentially problems, over time. It's like a safety net with a slow leak. It'll hold, but things might get uncomfortable the longer it's used. And, while the bill aims to incentivize congress to pass a budget, it could also have the unintended consequence of prolonging budget impasses as one side or the other might prefer the automatic cuts.