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Government Contracting News: Congressional Leaders Consider Year-Long Continuing Resolution Among Appropriations Options

Written on November 4, 2019

As the government continues to operate under temporary funding, the two chambers of Congress remain wide apart on providing a permanent FY’20 funding solution.  All federal agencies are currently working under a Continuing Resolution (CR) that expires on November 21st.  House leaders favor a short term CR after the expiration date that would fund the government until sometime in December, and then the passage of smaller packages of appropriations bills for “non-controversial” agencies. Some agencies, like DHS, would likely still operate under a CR into the 2020 calendar year with this approach. The Senate prefers a longer-term CR for all agencies that would last into the 2020 calendar year. Leaders in that chamber also say that depending on what happens with the House’s impeachment probe, a year-long CR is possible for many, if not all, federal agencies as Senate resources would be diverted to a possible trial.  The fact that a year-long CR remains on the table for at least part of Congress should be of concern to federal contractors.  CR’s mean that few, if any, new projects would be allowed to start, and that agency funding would stay relatively flat from FY’19 levels.  CR’s are also generally not good for efficient government operations overall.  While it is unlikely that the government will totally shut-down, FY’20 is off to a shaky start and clouds definitely remain on the horizon.  See the story here for more.

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