Why doesn't the federal government have to shut down if there is no agreement on an official federal budget? (Continuing budget resolution)

Answer: Continuing budget resolution

Explanation:

If no agreement has been reached by Congress on a Federal Budget, a Continuing Budget Resolution is a temporary measure that can be used to ensure that the government does not shut down.

A CR as it is often called works by appropriating funds at the same rate as the last budget or on a formula based on that previous budget.

The disadvantage of this is that if a government department wanted to start a new project, they will not be able to because only last year's expenses will be catered for.

Sometimes however, there are exceptions to the rule. This means that sometimes provisions may be made based on the current budget and will be included in the CR if the adverse effects of not doing so are considered significant.

It is important to note that CRs are not preferable to a full year budget because it affects effective planning and is therefore used only as a measure to keep the country going.