The Clock is Ticking: Congress Punts Key Budget Deadlines Ahead of Crucial Midterms 

Federal lawmakers acted on Tuesday, Sept. 1, to avert an immediate government shutdown, passing a stopgap funding package that keeps federal operations running through Dec. 11 while punting major legislative battles into a post-election lame-duck session.

The House approved the Senate-passed continuing resolution, HR 6500, with 11 members of the Michigan delegation from both parties voting in support, while U.S. Reps. Thanedar (D-Detroit) and Tlaib (D-Dearborn) voted against it. The measure provides short-term stability for federal agencies beyond the Sept. 30 fiscal year-end. Crucially, the legislation also temporarily extends federal surface transportation authorizations that were scheduled to lapse at the end of the month.

While the short-term patch prevents immediate disruptions at the U.S. Department of Transportation, it presents significant long-term concerns for the Detroit Region. The extension fails to continue the expiration of advance appropriations authorized under the 2021 bipartisan infrastructure law, halting guaranteed funding streams that have accelerated major highway, bridge, and transit modernization across Michigan.

A durable transportation network remains fundamental to the economy. Earlier this year, the Detroit Regional Chamber, alongside statewide partners, outlined key Surface Transportation Reauthorization Priorities and urged Congress to deliver multi-year funding certainty. House Speaker Mike Johnson signaled an intent to pass a comprehensive five-year reauthorization bill during the lame duck, yet the path remains clouded. The Senate has yet to release bill text, the U.S. House Ways and Means Committee has not moved the underlying tax title, and several policy disputes remain unresolved.

Beyond transportation, the stopgap includes language that temporarily delays the administration’s ability to finalize an Office of Management and Budget rule placing political appointees in charge of approving and terminating federal discretionary grants. It also postpones a planned federal ban on intoxicating hemp products, though other contested policy items face an uncertain road ahead. Key Legislative Priorities on the Horizon

Additional legislative and regulatory priorities confronting the business community include:

• Cyber defense and reporting: The stopgap package extends both the 2015 Cybersecurity Information Sharing Act and the State and Local Cybersecurity grant program through December 2026, following recent lapses, as federal authorities prepare mandatory reporting rules for critical infrastructure.

• AI oversight: The Senate Commerce Committee continues deliberations on AI guardrail legislation, while the federal government weighs potential restrictions on open-weight AI models relied upon by smaller enterprises and tech innovators.

• Tax policy certainty: Deliberations regarding a broader year-end tax package remain linked to the outcome of the November midterms, with the Chamber closely watching the potential extension of manufacturing incentives like the Advanced Manufacturing Investment Credit.