THREE REASONS WHY CONTRACTORS SHOULD CARE ABOUT THE BUDGET DEAL

Congress passed a new budget deal last week that, while it does not actually appropriate more money yet, does solve many other problems.  Here are three reasons you should care:

1. More Money:  The budget deal provides $32 billion more in discretionary spending than was available in FY’15.  Specific opportunities include over $400M for Social Security IT and consulting opportunities at the Department of Energy.

2.  No Sequestration – For Now:  The budget deal removes sequestration spending caps for FY’16 and ’17.  This means agencies and their contractors will be able to do some planning and have a reasonable business cycle, just as soon as Congress passes appropriations measures in December.

3.  No Debt Ceiling Hassle:  Congress also increased the federal debt ceiling as part of the budget deal.  This means that your customer won’t be in a state of uncertainty coming into November, meaning more business can get done.  Companies that need to borrow money will also see better rates than if the debt ceiling hadn’t been raised.  All of this is positive, but keep in mind that the government is still operating under a CR until December 11th.  Congress must appropriate money before that time to avoid a shut-down.  It wouldn’t be Halloween without something scary!