THE IMPACT OF CONGRESSIONAL GAMESMANSHIP ON CONTRACTORS

Even though Congress is not currently in session, what they do, or don’t do, can have a direct impact on your government business.  As we’ve said before it is essential that government contractors make clear to their elected officials the important role government business has on economies in their district or state.  Here are two recent examples of what we’re talking about:

1.  The Real Possibility Of Not Having FY’25 Appropriations Until Next Year:  With the presidential race now slightly favoring former President Donald Trump, conservatives in both chambers are putting pressure on leaders to delay final FY’25 appropriations action until the next Congress.  They’re betting that Republicans will control at least one chamber, as well as the White House.  This could result in one of two outcomes.  First, a delay in appropriations action until March or April.  Second, the increased chance that there may be a year-long CR for FY’25.  One is bad, while the other is worse.  Bloomberg Government recently showed that FY’24 DOD spending was well below FY’23 levels in the first two quarters, likely in large part to the delay in getting appropriations bills passed.  In addition, even large businesses will feel an impact of a full-year CR, which equates to an actual decrease in spending.  Playing politics with national security and economic stability should be off the table.

2.  A Significant Number of Representatives Previously Voted to Withold Contract and Grant Money:  During Congressional consideration of the current CR, approximately 100 House members voted against keeping the government open, jeopardizing $100 million in procurement and grant money.  While the needs of government contractors may not always be paramount, this money is about more than that.  Meeting missions is essential regardless of the time of year.  Each of these examples show that companies need to do a better job of telling their government business story.  Jobs can equal votes and more money for Congressional campaigns.  Make sure you’re educating your elected officials.