Continuing Appropriations and Extensions Act, 2027

It prevents an immediate funding lapse for most federal services and preserves expiring authorities while Congress considers full-year fiscal 2027 appropriations.

What the law does ​

• Funds most existing federal activities at fiscal 2026 rates through December 11, 2026, generally barring new programs and unnecessary spending.
• Provides targeted flexibility for defense, disaster response, wildfire suppression, nutrition, housing, health, census, farm lending, small-business lending, and other priority operations.
• Extends surface transportation programs, trust fund spending authority, and selected highway funding under prorated fiscal 2027 limits.
• Continues veterans’ health care, mental health, caregiver, homelessness, housing, transportation, education, burial, and oversight authorities.
• Extends agriculture, food aid, defense production, cybersecurity, technology modernization, patent, passport, environmental fee, and religious freedom authorities.
• Extends specified African and Haitian trade preferences through 2028 and customs-related fees through March 31, 2032.
• Adds $21.4 million in disaster relief for the Northern Mariana Islands and reduces the Medicare Improvement Fund by $21 million.
• Delays a federal grant-management rule and blocks a congressional cost-of-living adjustment during the temporary funding period.

Who it affects ​

• Federal agencies, employees, contractors, and recipients of federally funded services.
• Veterans, military personnel, disaster-affected communities, low-income households, farmers, small businesses, and transportation users.
• Importers, exporters, technology and cybersecurity programs, patent users, and trade-preference beneficiaries.
• State, local, territorial, tribal, housing, transit, highway, and community-service partners.

Context ​

The temporary funding ends earlier for an activity if regular fiscal 2027 appropriations take effect or omit that activity.

Breakdown ​

DIVISION A, CONTINUING APPROPRIATIONS ACT, 2027 ​

This division temporarily funds most federal departments and programs for fiscal year 2027, generally at fiscal year 2026 rates and under fiscal year 2026 conditions, through December 11, 2026, or until regular appropriations are enacted. It generally prevents new programs and limits spending to the minimum needed to continue operations, while allowing higher funding rates or special treatment for specified defense, disaster, health, nutrition, housing, transportation, wildfire, census, and other activities. It also extends selected expiring authorities, reallocates certain unused funds, blocks a federal grant-management rule through December 11, 2026, and bars a congressional cost-of-living adjustment during the covered period.

Key takeaways

• Temporary funding generally ends on December 11, 2026, or earlier when regular fiscal year 2027 appropriations take effect or omit a covered activity.
• Agencies generally must continue existing activities at fiscal year 2026 rates and may not start or resume activities that lacked fiscal year 2026 funding.
• The Department of Defense may not use the temporary funding for new production, higher production rates, new activities, or certain multiyear procurements, subject to specific exceptions for shipbuilding, national security systems, military housing, and other listed needs.
• The division permits targeted funding flexibility for mandatory benefits, personnel costs needed to avoid furloughs, disaster response, wildfire suppression, nutrition programs, farm and small-business loans, census preparations, judicial security, Indian Health Service facilities, housing assistance, and other specified operations.
• The division extends several expiring programs and authorities, including the National Flood Insurance Program, and preserves or reallocates selected unused balances for telecommunications, transportation, housing, and related purposes.
• The division prevents a specified federal financial-assistance rule from taking effect through December 11, 2026, and suspends any congressional cost-of-living adjustment during the temporary funding period.

DIVISION B, AUTHORIZING EXTENSIONS ​

This division temporarily extends a range of federal programs and authorities involving agriculture, food aid, national defense, environmental fees, trade, customs, cybersecurity, technology, patents, passports, and religious freedom. It also provides added disaster-related funding for the Northern Mariana Islands, adjusts the Medicare Improvement Fund, limits the temporary application of certain agricultural amendments, and excludes the division’s budget effects from specified congressional budget scorekeeping rules.

Key takeaways

• Several federal authorities and programs are extended through December 11, 2026, including grain standards, Food for Peace, the Defense Production Act, cybersecurity programs, the Technology Modernization Fund, patent fee-setting authority, and the Commission on International Religious Freedom.
• The African Growth and Opportunity Act and related apparel and fabric programs, along with the Haiti Economic Lift Program, are extended through 2028.
• Customs user fees and merchandise processing fees are extended through March 31, 2032.
• The Northern Mariana Islands receives an additional $21.4 million for fiscal year 2026 disaster relief, with the funding remaining available until spent and excluded from later funding calculations.
• The Medicare Improvement Fund is reduced from $2.062 billion to $2.041 billion.
• The division’s budget effects are excluded from specified statutory and Senate PAYGO scorecards and other listed budget calculations.

DIVISION C, SURFACE TRANSPORTATION EXTENSION ACT OF 2026 ​

This division temporarily extends federal surface transportation programs and related authorities from October 1 through December 11, 2026. It provides prorated fiscal year 2027 funding under generally the same rules as fiscal year 2026 and extends related trust fund spending authority and selected programs.

Key takeaways

• Federal surface transportation programs that otherwise would expire after September 30, 2026, continue through December 11, 2026.
• Fiscal year 2027 funding and obligation limits for covered highway, transit, and other transportation programs are prorated based on the length of the extension period.
• The prorated funds generally must be distributed and administered under the same rules that applied in fiscal year 2026.
• Certain highway program funds that otherwise would lapse on September 30, 2026, remain available through September 30, 2027.
• Authorities related to the Appalachian Regional Commission and sport fish restoration continue during the extension period.
• Spending authority for the Highway Trust Fund, Sport Fish Restoration and Boating Trust Fund, and Leaking Underground Storage Tank Trust Fund is extended through December 11, 2026.

DIVISION D, DEPARTMENT OF VETERANS AFFAIRS EXTENDERS ​

This division temporarily continues a broad range of Department of Veterans Affairs health care, benefits, housing, transportation, oversight, and other programs beyond September 30, 2026. Most authorities are extended through December 11, 2026, with short-term funding provided for several programs during that period.

Key takeaways

• VA authority to collect certain hospital and nursing home copayments and its duty to provide nursing home care to certain veterans with service-connected disabilities continue through December 11, 2026.
• Veterans’ mental health and caregiver programs receive temporary extensions or funding, including rural mental health services, suicide prevention grants, and mental health support for family caregivers.
• Authorities covering rural ambulance reimbursement, VA and Department of Defense health resource sharing, the VA regional office in the Philippines, and restoration of education benefits continue through December 11, 2026.
• Programs serving homeless veterans and very low-income veteran families receive temporary authority or funding for housing, treatment, rehabilitation, supportive services, and specialized grants.
• Specially adapted housing assistance, adaptive sports programs, VA transportation, Inspector General subpoena authority, and advisory committees for homeless and minority veterans are temporarily continued.
• The division also extends authorities involving burial plot allowances, vendee loans, and VA real-property transfers, generally through December 11, 2026.