CONGRESSIONAL LEADERS SEE LIGHT AT END OF APPROPRIATIONS TUNNEL

“I’m very optimistic that we can get them done by March 1,” said Senate Majority Leader Chuck Schumer (D-N.Y.) February 13th of the 12 bills needed to fund all federal agencies through the end of the 2024 fiscal year.  That’s potentially good news for contractors and their government customers, but stumbling blocks, including election year politics, remain.  The largest stumbling block right now appears to be a series of policy riders that House Republicans want to add to specific spending measures.  While appropriations bills aren’t supposed to have policy riders, they almost always do and, inevitably, they are meant to execute the policy priorities of the majority party.  It is very possible that some members would vote “no” on bills that don’t contain policy language they see as critical.  Similarly, some may vote against certain appropriations measures because they don’t cut spending enough.  Cuts are already expected, for example, in the Labor, HHS, and Education bill and likely on the one providing money for the departments of Commerce, State, and Justice.  With a razor thin majority in the House, even one or two Republican hold outs would mean that Democratic votes would be needed to pass any spending measure.  As such, while leaders may be optimistic, there is still plenty that could delay or torpedo “final” appropriations for certain agencies.  Deadlines are starting to loom as well.  The House is scheduled to be in session for only two days between now and March 1st, the deadline for the first set of bills to be passed.  That leaves little time for missteps or reconciliation with the Senate. Contractors should also take note of comments issued February 15th by House Republican Whip Tom Emmer (R-MN) “You are not going to get another continuing resolution out of our conference,” he said, indicating that spending bills must pass or that some agencies may face a shutdown.  Allen Federal is still predicting that there is a 70-75% chance that most or all of the FY’24 appropriations bills will pass in early March.  While the light at the end of the tunnel could bring good news for contractors and their customers, it could also bring a freight train for certain projects.