What happens if a budget is not approved in time?

When a budget is not approved in time, a continuing resolution may be enacted to ensure that government operations can continue without interruption. A continuing resolution is a temporary measure that allows for the funding of government activities at current or previous levels, essentially extending the previous budget until a new budget can be agreed upon. This mechanism is crucial for maintaining the stability of government services and programs while legislators work through the challenges of reaching a consensus on a new budget.

The necessity for a continuing resolution arises during fiscal transitions when a budget is either delayed or contentious, helping to avoid a government shutdown that would result from a lack of appropriated funds. This process allows government agencies to operate and fulfill their obligations to the public without drastic interruptions that would occur if no funding was authorized.