MORE NEW MONEY FOR COVID WORK? DON’T BET ON IT

Although the Senate has been working hard on various measures that would allocate more money for COVID-related spending, contractors shouldn’t get their hopes up too high.  First, the original size of the initial Senate proposal was trimmed earlier this week to $10 billion.  Next, a report came out saying that the majority of that money has already been obligated.  Now, however, Senators can’t agree on what a new spending bill would like and, with a two-week recess pending, it seems more and more unlikely that any measure will make it through the Senate, let alone the House, for at least several more weeks.  That doesn’t mean that the issue of new COVID money is dead, however.  Congressional Democrats state that more spending is needed and are determined to make another run at the issue, perhaps actually increasing the dollar level now being discussed.  In the meantime, contractors are better served by focusing on money that has already been appropriated and business that they are pursuing for the rest of the fiscal year.  Congress may or may not get around to passing another COVID measure, but the net new money in it may be small and will likely be specifically targeted for unique needs.  Most companies are better off focusing on what they already know.  Expect substantial political wrangling from Congress as the mid-term elections in November draw closer.  While contractors can’t ignore what might result from pre-election posturing, most of it will have little direct impact on government business.  Keep an eye on Congress, but don’t let it distract from your focus on business.