BUDGET DEAL TO PROVIDE FULL YEAR APPROPS TO VA & MILITARY CONSTRUCTION

The Continuing Resolution finalized this week will fund the VA and all military construction accounts for the full 2017 Government Fiscal Year.  The Legislative Branch will also have full year funding.  Government operations funded from these accounts will be able to initiate new projects and plan for an entire year.  All other federal agencies would operate under a CR until at least December 9th.  The CR funds those agencies at FY’16 levels, minus an across-the-board .5% reduction to ensure that spending caps are not exceeded.  Agencies will not be able to initiate new projects under the CR unless they have access to non-appropriated dollars or have multi-year money.  This includes all parts of DOD, except operations tied specifically to military construction.  Congress will have to return after the election and either finalize appropriations for remaining government agencies, pass another CR, or some combination thereof.  Most likely, there will be another short term CR leading up to the last part of December as Congress tries to work out a deal on permanent appropriations.  It is too early to tell how those discussions will play out.