With funding for the federal government set to expire at midnight on Friday, March 14, Congress has been scrambling to pass a continuing resolution (CR), to avoid a government shutdown. Earlier this week, the House of Representatives narrowly passed the continuing resolution, by a vote of 217-213, and it was sent over to the Senate. As you are probably aware, in the Senate the measure needs 60 votes to pass.
The CR would fund the government through the remainder of the fiscal year, which is September 30. It would cut non-defense spending by $13 billion and increase defense spending by $6 billion.
So, what are Democrats worried about? Congressional Democrats are concerned about the discretion that the spending bill would give to the Trump administration. Democrats were already upset with cuts to government programs and staff by the Department of Government Efficiency (DOGE). They wanted language to restrict the ability of President Trump to cut funding for various programs.
So, what are Republicans saying? Republicans point out that that the bill is like every other CR, and it gives President Trump the same discretion that any sitting president would have under a CR. They also point out, that if there is a government shutdown, it will be because Senate Democrats voted for one.
In the event of a shutdown, contractors should review this AGC memo. As always, we will keep you updated on the latest.
For additional information, please contact Alex Etchen.