The current Continuing Resolution (CR) funding all government agencies expires at midnight December 20^th.  With no apparent agreement on top level spending numbers, it appears increasingly likely that Congress will pass a CR funding the government through sometime in March.   Appropriations experts have noted that full appropriations measures weren’t passed until late April during the initial year of the first Trump administration.  There doesn’t appear to be a major push for a government shutdown right before the Christmas holiday, but any CR will realistically need to have Democratic support in the House to pass.  Whether that will come before the current deadline is unknown.  While Allen Federal predicted this course of events in the Fall, it is still one that is frustrating for contractors and their government customers.  No new starts, reduced ability to plan strategically, and setting the market up for another fourth quarter frenzy are among common concerns.  In addition, while funding continues at FY’23 levels, that can mean an actual reduction in spending for agencies such as DOD and DHS that are slated to see increases for FY’25.  That could be a particular problem given global security developments.  Larger contractors may be best positioned to weather this storm due to existing business.  Smaller companies, however, may face another cash crunch as more and more small business acquisitions get pushed to the end of the fiscal year.  Larger businesses may want to ensure that their critical small business partners are prepared and able to handle delays.  Unfortunately, the March scenario for FY’25 appropriations passage may be a “best case” one.  It is possible that most or all of the government could be funded via a CR for the entire 2025 fiscal year.  Contractors should watch these developments closely and make sure that they are in continuous contact with current and prospective clients.