FUTURE SAYS: EXPECT GRIDLOCK ON FUTURE LEGISLATIVE CHANGES SHAPING FEDERAL MARKET
While the outcome of last week’s election is still uncertain as we write this, it appears that Vice President Biden will prevail in his race against President Trump. In the meantime, however, Republicans will likely retain control of the Senate and actually picked up seats in the House of Representatives. This creates razor-thin majorities for one party in the House and the other in the Senate starting in January. Any president would have a difficult time pressing his agenda through such a Congress. The outcome of the election should not impact either the FY’21 Defense Authorization Act or an omnibus appropriations bill, both of which are expected to pass this calendar year (see article below). Future legislation, however, will be managed by several new committee chairs, some with very partisan views. New members, too, especially in the Senate, will contribute to the creation of new measures that will likely include increased requirements for domestic sourcing and new penalties for non-compliance. Traditional issues, such as small business and veteran’s business promotion, may also see attention. The good news for contractors is that the tightness of majorities in Congress makes it unlikely that revolutionary changes will be implemented – unless some outside news bomb makes it imperative. The bad news is that some needed reforms may also be more difficult to push through. As with most things, the impact of the election on government business will likely be more evolutionary than revolutionary.