PRESSURE MOUNTING ON CONGRESS TO INCREASE SPENDING

After multiple years of slow, or effectively zero, growth, pressure to increase federal spending on everything from cyber, to national defense, to public health and other areas seen as “priority” is building. While it is unlikely that a Republican-controlled Congress will accede to all demands, their multiple and diverse nature, coupled with years of pent-up demand, set the stage for real increases in at least some quarters.  The most recent proposal comes from the Senate, where Senate Democrats are floating a proposal to increase defense spending in FY’17 by $18 billion, but couple it with a commensurate domestic increase for Zika virus programs, TSA funding, and other domestic areas.  The Administration is already asking for $3.1 billion in funds dedicated to IT infrastructure upgrades, and transportation and medical research sectors are just two of many other areas approaching Congress with the message “we’ve sat on the sidelines for too long, and have to act now.”  Just as it is unclear how many “necessary” projects will receive real money, it is unclear on how they would be paid for.  Still, contractors need to follow FY’17 money discussions closely.  New funds translate into new business opportunities for those who can follow the money.