Congress has approved and the President has signed a short-term continuing resolution (CR) to keep the federal government funded through December 11, 2026, avoiding a government shutdown at the start of the new fiscal year. The measure, H.R. 6500, the Continuing Appropriations and Extensions Act, 2027, was approved by the House on September 1 by a vote of 370-48 and signed into law on September 2. 

 The CR generally provides funding for federal programs and activities at FY 2026 levels, with certain exceptions and targeted provisions, while Congress continues work on the FY 2027. It also includes several targeted funding adjustments and program extensions, including provisions related to surface transportation and veterans programs.  

Uniform Guidance Rule Delayed 

Of particular interest to economic development organizations and other recipients and administrators of federal grants, the legislation also delays implementation of the Office of Management and Budget’s (OMB) proposed changes to the Uniform Guidance, the rules governing the administration of federal grants and cooperative agreements. 

Under the CR, OMB may not finalize the proposed rule through December 11. The proposed changes, published by OMB in May, would make significant changes to federal grant administration, including requirements related to grant management, cost principles, audits and pass-through entities. 

The delay provides additional time for federal agencies, states, local governments, economic development organizations and other grant recipients to assess the proposed changes and prepare for any eventual implementation. 

Surface Transportation Also Extended Through December 11 

The legislation also includes a short-term extension of federal surface transportation programs through December 11, 2026. The Surface Transportation Extension Act of 2026, included as Division C of H.R. 6500, extends highway and transit authorities that were scheduled to expire September 30. The extension generally continues existing program authorities and provides funding for the extension period through the Highway Trust Fund and other sources. 

The extension provides additional time for Congress to work on a longer-term reauthorization of federal surface transportation programs. Lawmakers have indicated an interest in completing a broader, multi-year reauthorization, but significant policy issues remain unresolved. 

For economic development organizations and communities, the extension provides continued federal support for highway and transit programs while Congress works toward a longer-term transportation authorization. IEDC will continue to monitor the reauthorization process, including provisions affecting transportation investment and infrastructure funding. 

What Comes Next 

The CR provides temporary certainty for federal programs and funding, but it does not resolve the FY 2027 appropriations process. Congress will need to continue negotiations on the 12 annual appropriations bills before the December 11 deadline. 

For economic development organizations that rely on federal programs and grants, the coming months will be important to monitor. IEDC will continue to track and advocate for federal economic development programs, surface transportation reauthorization, grant administration, and other priorities for the economic development community.