There’s a lot to dislike about Continuing Resolutions (CR), aside from the fact that they’re better than a shutdown.  Let’s look at just some that are impacting federal business right now.

First, the current CR funding most of the government expires Friday, December 9^th.  Despite assurances that Congress will pass another measure before that time, several federal agencies have definitely slowed their buying and planning until they know for certain that they will have money after that date.  This can definitely have an impact on business your firm is trying to close before the holidays.

Second, CR’s can harm national security.  Senior Pentagon officials recently pointed out that freezing the Pentagon’s ability to initiate new programs for half a year – or longer – said as much.  In fact, DOD Secretary Ashton Carter is asking Congressional leaders to not pass a CR that would last until May 31^st, a full 2/3^rd’s of the 2017 Fiscal Year, because it would result in actual increased costs and make preparedness more difficult.

Third, in addition to the well-known prohibition on new project starts, the CR also freezes spending at FY’16 levels.  This means no money for new projects and very tight budgets for everything else.  Top priority items, like cyber spending, will continue, but any discussion of projects not deemed the highest priority will likely be tabled.

All of this could mean a slower year than many contractors had predicted.  Right now, it looks as if most of the government will, indeed, operate under a CR for most, if not all, of FY’17.