The U.S. Senate on Nov. 10 voted 60 to 40 to pass legislation that will waive the statutory Pay-As-You-Go Act (Paygo) at the end of the year, protecting Build America Bond (BAB) and New Clean Renewable Energy Bond (New CREB) payments and elective pay tax credit payments from elimination via sequestration.
The Paygo provision is part of H.R. 5371, the Continuing Appropriations and Extensions Act, 2026, which will provide funding for agencies through January 30, 2026 – enough time to complete final action on annual appropriations bills. In the meantime, enactment will allow federal offices that have been shuttered since October 1 to reopen.
The bill next heads to the House and, if passed, then to the White House where President Trump has signaled his support.
The measure also includes the three final Fiscal Year 2026 appropriations bills. While it does not include the final appropriation bill for the Department of Health and Human Services, enactment still would allow the release of Fiscal Year 2026 Low Income Home Energy Assistance Program (LIHEAP) funds. It may take several weeks for LIHEAP funds to reach the states, but APPA said it is pleased the funds will be released.
APPA is also pleased at the broad bipartisan support enjoyed by LIHEAP and the intention in the House and Senate to increase funding for the program when a final appropriation bill is enacted.
