The current Continuing Resolution (CR) funding all government agencies expires at midnight December 20th. With no apparent agreement on top level spending numbers, it appears increasingly likely that Congress will pass a CR funding the government through sometime in March. Appropriations experts have noted that full appropriations measures weren’t passed until late April during the initial year of the first Trump administration.
There doesn’t appear to be a major push for a government shutdown right before the Christmas holiday, but any CR will realistically need to have Democratic support in the House to pass. Whether that will come before the current deadline is unknown. While Allen Federal predicted this course of events in the Fall, it is still one that is frustrating for contractors and their government customers. No new starts, reduced ability to plan strategically, and setting the market up for another fourth quarter frenzy are among common concerns. In addition, while funding continues at FY’23 levels, that can mean an actual reduction in spending for agencies such as DOD and DHS that are slated to see increases for FY’25.