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PSC Calls on Congress to Avoid a Shutdown 

Federal contractor associations warn of dire impacts to businesses if a shutdown occurs

Arlington, Va. (Sept. 28, 2023) In a joint letter to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, House Speaker Kevin McCarthy, and House Minority Leader Hakeem Jeffries, the Professional Services Council (PSC) and National Defense Industrial Association (NDIA) urged expeditious Congressional action to protect our nation from the impacts of both government shutdowns and continuing resolutions (CRs). 

The two associations raised three requests for immediate action: (1) avoid a shutdown of the federal government; (2) pass and send to the President a CR solely as a temporary appropriation as a bridge; and (3) expedite passage of the fiscal year (FY) 2024 defense appropriations bill and the other 11 full-year appropriations bills. 

“Federal contractors across the country play vital roles in assisting the government to meet the needs of the American people. Uncertainty around funding and delays in getting paid, either due to a complete government shutdown or short-term CR, would affect companies’ ability to sustain cash flow and pay their employees,” said PSC President and CEO David J. Berteau. “Unlike federal employees, furloughed contractors do not receive back pay. Start-up companies and small and mid-size businesses in particular would feel the pain of what is an avoidable situation.”

PSC and NDIA highlighted in the letter that contractors are a vital source of innovation, job creation, and economic stability. Contractors are grappling with supply chain, workforce, and inflation issues and cannot meet tomorrow’s needs across defense, health, cybersecurity, financial, education, and environmental sectors without funding.

“This is clearly about more than the companies and their workers,” Berteau continued. “Every interruption in a contract results in critical government work that is delayed or, depending on the contract and length of delay, eliminated entirely. Simply put, inconsistencies and pauses diminish results delivered to the American people across all federal agencies and programs. Congress must pass full-year FY24 appropriations as soon as possible, and we remain committed to working with Congress to achieve this goal.”