Lapses in Appropriations

Overview

A lapse in appropriations refers to a period of time between the expiration of an appropriation and the enactment of a new one. These lapses occur most commonly at the end of a fiscal year when neither a regular appropriation (which typically provides funding for an entire fiscal year) or a continuing resolution (which provides short-term funding) has been enacted.

A lapse in appropriations may affect only a few agencies or the entire federal government. From FY 1977 through FY 2019, there were 20 such lapses in which there was at least one full day without available funding. These lapses ranged from 1 to 35 days.

When a lapse in appropriations occurs, the Antideficiency Act requires agencies to generally shut down their operations. This protects Congress’s power over federal spending by preventing the executive branch from operating without funding. This act prohibits agencies from incurring obligations or making payments in advance or in excess of an appropriation. 31 U.S.C. § 1341. Therefore, agencies generally may not spend money during a lapse in appropriations, including for employee salaries. In addition, employees cannot “volunteer” their services to agencies—i.e., provide services without payment—except in very limited circumstances. 31 U.S.C. § 1342.

Determining whether a particular activity may continue during a lapse in appropriations requires a two-step inquiry:

• First, activities for which there are available appropriations may continue. Such authority may derive from multiple year or no-year appropriation carryover balances or other available balances (such as from fee income that Congress made available for obligation outside of the annual appropriations process). For example, Social Security benefits are funded through a permanent appropriation, and they may continue to be paid during a lapse in appropriations.
• Second, if no appropriations are available for a particular activity, that activity may only continue if an exception to the Antideficiency Act applies. For example, agencies may continue activities that are necessary to protect human life and government property. 31 U.S.C. § 1342. In addition, Congress and the President may continue work on enacting new appropriations that will end the lapse. However, the ongoing, regular functions of government may not continue during a lapse in appropriations.