RECESS RHETORIC POINTS TO INCREASED SHUTDOWN CHANCES

Few government professionals or contractors embrace Continuing Resolutions (CR’s) because they stifle new project starts, almost all would agree, though, that they’re better than nothing.  Nothing, however, is what may be on the horizon if members of the House Freedom Caucus withhold support from passing even a “clean” stopgap spending measure.  The Caucus stated last week that they will do just that, potentially leading to a partial government shutdown in early October.    While House Democrats may not want a shutdown, they may also, at least initially, withhold votes for a CR to force a shutdown that they could then use as political leverage.  There is more to passing a CR than merely deciding on whether or not the government should remain open.  Republicans would like to stake a claim to fiscal responsibility, while Democrats want to show that Republicans can’t be trusted with the reins of government.  Government agencies and their contractor partners are caught in the middle, along with Americans who require government services, or may just want to visit federally funded parks or museums.  There is no way right now to accurately forecast how long a shutdown could last, but contractors may want to be prepared for longer-term disruption of their government business.  Recent longer shutdowns include a 16-day episode in 2013 and a 35-day closure spanning from the end of 2018 into 2019.  In addition to the conduct of business, a longer shutdown would also impact conferences featuring government speakers and attendees.  Few, if any, government officials would be able to attend the packed Fall calendar of events where important information is shared and relationship development enhanced.  There is always a chance that a majority in Congress will relent and pass a CR to fund the government until such time as final FY’24 spending bills are ready for a vote.  Contractors and their government customers, however, should prepare now for a closure and watch developments closely when Congress returns after Labor Day.