Congress is on its July 4th recess, providing an opportunity to take a measure of where things stand in the fiscal year (FY) 2027 budget process. While FY 2027 begins on October 1, appropriations are unlikely to be enacted by then. The House has made significant progress, while the Senate has not.
Congress struggles to meet the October 1 deadline every year, and election years are especially challenging. Accordingly, a continuing resolution (CR) to fund programs at their FY 2026 amounts is the most likely scenario to kick off FY 2027. A government shutdown is also possible but not expected in an election year.