US House passes funding bill to avert shutdown; borrowing costs hit fresh highs amid inflation fears

The U.S. House of Representatives successfully passed a crucial funding bill on Tuesday, September 1, 2026, to prevent a government shutdown that was looming at the end of the fiscal year. The bipartisan vote of 370-48 saw a significant number of Democratic members crossing the aisle to support the measure, known as a continuing resolution. This stopgap bill extends federal funding through December 11, 2026, pushing critical budget decisions past the upcoming November midterm elections.

The legislative action comes as lawmakers sought to avoid a politically disruptive shutdown so close to the midterm elections, which will determine the balance of power in Congress for the remainder of President Donald Trump's term. The Senate had already approved this short-term funding measure in August by an overwhelming margin, sending it to the House for its final passage. The bill now proceeds to President Trump's desk for his signature, ensuring government operations continue without interruption past the September 30 deadline.