THINK THERE’S PLENTY OF TIME TO GET FY’24 SPENDING IN PLACE? THINK AGAIN

Despite the fact that there are nearly three months left in FY’23, there are only approximately two-dozen legislative days remaining in the fiscal year based on a review of the House calendar and past precedent of when that chamber is in recess during August and September.  That’s very little time to finalize all 12 appropriations bills and the FY’24 defense authorization measure.  In addition to the short time, House leaders must also contend with a fractured Republican caucus where some members will definitely push for spending restraint making it difficult to come up with the 218 votes needed to pass any bill without Democratic support.  On top of that, contractors must keep in mind the provision of the debt ceiling increase deal that called for an automatic 1% sequestration of FY’24 money if all spending measures weren’t completed on time.  That Sword of Damocles will hang over both industry and government the closer it gets to October 1st.  While some may argue that this is no way to run a government, contractors must keep in mind that the priorities of legislators aren’t always the same as theirs, or those of federal customers.  Some in Congress, regardless of party, would rather have the issue than a resolution.  The best approach for contractors is two-fold:  First, get as much business under contract as possible between now and September 30th.  Even business that just gets a project started may be enough to ensure that it continue under a probable Continuing Resolution (CR).  Second, be prepared for the first month or two of FY’24 to be rocky.  No one, not even Congressional leadership, knows for certain what will happen.  It is unquestionably better, though, to heed the advice of Bette Davis and “fasten your seatbelts” as it will be more than just a bumpy night.