What happened
The Senate has reached a bipartisan deal on a temporary funding bill, avoiding a government shutdown at the end of September and keeping federal agencies funded into mid-December. Senators on the Appropriations Committee agreed Sunday to the stopgap measure, with an initial procedural vote scheduled for Monday night. Senate leaders aim to pass the bill before heading into recess, according to reports.
Why it matters for the market
The continuing resolution includes adjustments for the Special Supplemental Nutrition Program for Women, Infants and Children, the Disaster Relief Fund and shipbuilding. It also temporarily blocks the White House from altering the grant-approval process.
Sen. Patty Murray, the committee's vice chair, said the bill blocks a policy that would allow Trump to hold federal grants hostage and closes a loophole for other agencies' funding. Committee Chair Susan Collins said she is pleased the agreement prevents the Office of Management and Budget's proposed rule on federal assistance from taking effect.
Senate Minority Leader Chuck Schumer credited Murray and called the stopgap "a responsible path forward." A spokesperson for Senate Majority Leader John Thune noted that passing it now would avert a costly shutdown in the fall.
What traders should watch
The government would be funded through Dec. 11 if the bill passes. Lawmakers continue to stress the need for full bipartisan appropriations bills, with Collins saying the CR gives Congress time to continue that work.
