This past week the U.S. House of Representatives passed a continuing resolution to extend the FY10 budget through FY11 and provide $5.7 billion to pay off the pending Pell Grant funding shortfall.

The Continuing Resolution maintains funding for programs in FY11 at the same levels as in FY10 with some exceptions. The Resolution reduces spending to some programs to pay for other spending priorities like the Pell Grant Program.

If passed by the U.S. Senate the Continuing Resolution would become effective when the current continuing resolution expires on December 18. The Resolution is necessary because Congress has not passed the twelve appropriations bills needed to pass a FY11 budget.

It is unclear, however, how the Senate will act. There has been some indication that current leadership would like to combine all appropriations bills into one an omnibus spending bill. Another option would be for the Senate to pass their own continuing resolution, which could last the entire FY11 similar to the House or opt for a shorter timeframe such as a few months.