NEW CR, POSSIBLE SHUTDOWN, ALL POSSIBLE AS APPROPS DEADLINE LOOMS

Senate leaders are actively calling for a new short-term Continuing Resolution (CR), one that may last into March, as the first current deadline for passing appropriations bills approaches at the end of next week.  House leaders have previously expressed opposition to such a move, and it is unclear whether there will be enough votes there to support a CR.  One sticking point is that some House members appear to want the issue of a shutdown more than they want to pass spending bills to try and score political points in an election year.  This is not only a precarious political path, but also one that threatens to disrupt critical government operations, including defense preparedness and cybersecurity.  The uncertainty also means that neither contractors nor their government customers can properly plan on the implementation of new awards and projects.  Companies should, however, ensure that their shutdown contingency plans are in place.  Spending for the Department of Veterans Affairs, HUD, Agriculture, and military construction all expire at midnight January 19th.  In addition, both the House and Senate have short weeks next week due to the Martin Luther King, Jr. federal holiday.  While Defense and other spending will continue under the current CR until February 2nd, a CR would likely remove the two-tier dynamic and just push everything out for approximately 2 more months.  This is no one’s best case scenario and will have a serious impact on business through the end of the fiscal year.  Contractors, though, just don’t have to sit back.  Remember that elected officials work for you.  Make sure your voice is heard if you have concerns about Congress’ desire to continually kick the appropriations can down the road.