The Latest

Congress is working to finalize a short-term funding plan as the start of the fiscal year approaches on October 1. Here’s the latest:

House Action on the FY27 Continuing Resolution

The House has passed a narrow FY27 continuing resolution (CR), H.R. 9770, which would extend current FY26 funding levels through December 11. The bill passed along party lines in the House on July 21, 2026. Lawmakers are now in recess.

Senate Agreement on a Parallel CR Framework

The Senate is advancing its own CR, also running through December 11. While the Senate’s CR text is not yet public, leaders have indicated that they have agreement on a short-term extension similar to the House approach. However, the Senate’s CR includes a number of additional policy provisions to garner the bipartisan support needed to clear the measure in the Senate.

Important OMB-Related Language in the Senate Version

The Senate’s version of the FY27 budget resolution includes specific language that would delay OMB’s ability to implement a final Uniform Grant Guidance regulation during the CR period. This matters because it would significantly impact OMB’s ability to revise federal grant guidance under its current proposed timeline. NAWB has previously reported on this and released a Toolkit. The Senate language signals growing Congressional scrutiny of OMB’s proposal.

For Workforce Boards, this means:

• Increased Congressional scrutiny of OMB’s proposed changes
• Possible limits on how OMB can finalize the Uniform Guidance rewrite
• Clear Congressional interest in future federal grantmaking

What This Means for FY27 Workforce Funding

With both chambers aligned on passing a CR to keep the government operating:

• FY27 will start at FY26 funding levels
• Appropriations negotiations will resume after the election, pushing major decisions into late fall
• Workforce Boards should expect level funding until Congress completes full-year appropriations
• Advocacy remains essential and NAWB encourages its members to download our template letter to contact Congress today.

Why This Matters for Workforce Boards

The CR, if enacted, would keep the system stable for now, but the final decisions about FY27 funding and the future of federal grant rules are still ahead. Workforce Boards should be prepared to:

• Communicate local impact to congressional offices
• Highlight how stable and sufficient funding supports employers and jobseekers
• Monitor OMB’s actions closely as the Uniform Guidance rewrite moves forward

NAWB will continue to track developments and provide updates as Congress advances the CR and begins full-year appropriations negotiations.