What it is
A continuing resolution (CR) is a stopgap funding measure that Congress passes to keep the federal government funded when it cannot agree on the annual appropriation bills by the start of the fiscal year (October 1st). A CR typically maintains funding for agencies and programs at their previous year's levels for a specified period, preventing a government shutdown while negotiations for a full budget continue.
Congress frequently uses continuing resolutions to avoid government shutdowns, especially during periods of political gridlock. While CRs prevent immediate disruptions, they can hinder long-term planning for federal agencies and programs, potentially affecting contract approvals or grant disbursements. Markets react to the duration and terms of CRs, as prolonged uncertainty can impact investor sentiment and economic forecasts.
Why it matters
CRs prevent shutdowns but signal ongoing budget disagreements, potentially affecting federal agency operations and market confidence.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice