To help avoid the costs and disruptions of agency shutdowns when there is a lapse in appropriations.

SECTION 1. AUTHORITY TO OBLIGATE DURING LAPSE IN APPROPRIATIONS.

    (a) Chapter 13 of title 31, United States Code, is amended by 
inserting after section 1310 the following new section:
``Sec. 1311. Authority to obligate during lapse in appropriations
    ``(a)(1) Notwithstanding section 1341 of this title, if any 
appropriation bill for a fiscal year does not become law prior to the 
beginning of such fiscal year, an officer or employee of the United 
States Government or of the District of Columbia government may incur 
obligations as may be necessary to continue any project or activity for 
which funds were provided in the preceding fiscal year--
            ``(A) in the corresponding regular appropriation Act for 
        such preceding fiscal year; or
            ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, pursuant to this 
        section.
    ``(2) The authority to incur obligations for a project or activity 
for any fiscal year pursuant to this section shall be at a rate of 
operations not in excess of the lower of--
            ``(A) the rate of operations provided for in the regular 
        appropriation Act, including any continuing resolution, for 
        such project or activity for the preceding fiscal year; or
            ``(B) in the absence of such an Act, the rate of operations 
        provided for such project or activity pursuant to this section 
        for such preceding fiscal year.
    ``(3) The authority to incur obligations, for any fiscal year 
pursuant to this section for a project or activity shall be available 
for the period beginning with the first day of such fiscal year and 
ending with the earlier of--
            ``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such project or activity), or
            ``(B) the last day of such fiscal year.
    ``(b) The authority to incur obligations for a project or activity 
for any fiscal year pursuant to this section shall be subject to the 
terms and conditions imposed with respect to the appropriation made and 
funds made available or authority granted for such project or activity 
for the preceding fiscal year.
    ``(c) Expenditures made to liquidate any obligation incurred for a 
project or activity for any fiscal year pursuant to this section shall 
be paid out of the applicable appropriation fund whenever the 
appropriation bill providing for such project or activity becomes law.
    ``(d) This section shall not apply to a project or activity during 
a fiscal year if program authorization for the project or activity has 
expired.
    ``(e) This section shall not apply to a project or activity during 
a fiscal year if any other provision of law (other than an 
authorization of appropriations)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such project or activity to continue for 
        such period, or
            ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority shall 
        be granted for such project or activity to continue for such 
        period.
    ``(f) For purposes of this section `regular appropriation bill' 
means any regular appropriation bill (within the meaning given to such 
term in section 307 of the Congressional Budget Act of 1974 (2 U.S.C. 
638)) making appropriations, otherwise making funds available, or 
granting authority, for any of the following categories of projects and 
activities:
            ``(1) Agriculture, rural development, and related agencies 
        programs.
            ``(2) The Departments of Commerce, Justice, and State, the 
        judiciary, and related agencies.
            ``(3) The Department of Defense.
            ``(4) The government of the District of Columbia and other 
        activities chargeable in whole or in part against the revenues 
        of the District.
            ``(5) The Department of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(6) The Department of Housing and Urban Development, and 
        sundry independent agencies, boards, commissions, corporations, 
        and offices.
            ``(7) Energy and water development.
            ``(8) Foreign assistance and related programs.
            ``(9) The Department of the Interior and related agencies.
            ``(10) Military construction.
            ``(11) The Department of Transportation and related 
        agencies.
            ``(12) The Treasury Department, the United States Postal 
        Service, the Executive Office of the President, and certain 
        independent agencies.
            ``(13) The legislative branch.
    ``(g) Obligations incurred under the authority of this section may 
not be liquidated prior to the enactment of the applicable regular 
appropriation bill.''.
    (b) The table of sections for chapter 13 of title 31, United States 
Code, is amended by inserting after the item relating to section 1310 
the following new item:

``1311. Authority to obligate during lapse in appropriations.''.
    (c) The amendments made by this subsection shall apply with respect 
to fiscal years beginning after the date of enactment of this Act.

Summary: Amends Federal law to permit an officer or employee of the US or District of Columbia government to obligate as may be necessary during a lapse in appropriations to continue any project or activity funded in the preceding fiscal year if any appropriation bill for a fiscal year is not enacted into law prior to the beginning of such fiscal year. Specifies that obligations for a project or activity be at a rate of operations not exceeding the lesser of: (1) the rate of operations provided for in the regular appropriation Act, including a continuing resolution. Or (2) in the absence of such an Act, the rate of operations provided for such project or activity in the preceding fiscal year. Requires that the authority to obligate be made available for the period beginning with the first day of such fiscal year and ending with the earlier of: (1) the enactment date of the applicable regular appropriation bill for such fiscal year, regardless of whether such law provides for such project or activity. Or (2) the last day of such fiscal year. Sets forth provisions concerning the authority to obligate for a project or an activity during a fiscal year.