The Department of Defense will receive $26.8 billion more in discretionary spending per the six-bill
“minibus” package Congress passed this past weekend.  That’s good news for contractors and their DOD customers.  The overall measure includes over $1.2 trillion in spending to fund about three quarters of the government.  In addition to DOD, the Department of Homeland Security will also see an increase in discretionary spending of $1.1 billion from last year.  That is a significant increase with most funds going toward strengthening the US southern border.  Not all agencies will see an increase.  The Department of State and associated foreign operations spending will see a $3.4 billion cut from FY’23.  This reflects Congressional skittishness over sending money overseas, despite what others believe to be compelling needs of US allies.  Financial service spending will also decrease by $1.1 billion. Other agencies, such as HHS and Labor, will essentially see modest increases that are more than offset by inflation, making for a net decrease in spending ability.  It may take 4-6 weeks for each federal office to receive its final FY’24 spending number once the appropriations measure passes.  That means that contractors and their customers will only have 5 months to get available money obligated.  Contractors should be prepared to assist agency customers by recommending fast, efficient acquisition methods to ensure that critical programs can progress before midnight September 30^th.  There will be no extension of the fiscal year regardless of the Congressional delay.  Bloomberg Government had estimated earlier this week that the significant delay in funding resulted in 40% fewer acquisition actions.  That translates into significant pent-up demand.  Be prepared.