U.S. Congress Fails to Pass Budget for 30th Year

The United States Congress failed to pass all annual appropriations bills before the start of the next fiscal year for the thirtieth consecutive year. To avoid a government shutdown, the legislative body relied on a temporary continuing resolution to maintain federal funding.

This legislative dysfunction coincides with severe fiscal instability. The federal government recorded a $432 billion deficit in July and surpassed a $40 trillion total debt threshold in August. Projections indicate that total liabilities and unfunded obligations will exceed $147 trillion by September 30, 2026, while the Congressional Budget Office projects debt held by the public will reach 175% of GDP within 30 years.

In response to the crisis, the Federal Fiscal Sustainability Foundation proposed several reforms. These include a "No Budget, No Pay Rule" to withhold member pay until appropriations are passed and the repeal of the debt ceiling in favor of a constitutional credit card limit set at 110–120% of GDP. Additionally, the House and Senate are considering the Bipartisan Fiscal Commission Act to establish a statutory fiscal commission.