Tomeka B. Scales, Ph.D.
Director, Media Engagement & Communications
703.875.8974
media@pscouncil.org

Shutdown Averted:
Congress Passes Continuing Resolution, Ensuring Government and Contractor Operations Continue

Arlington, Va. (December 21, 2024) -- In the final hour, Congress successfully passed a Continuing Resolution (CR), averting the potential government shutdown that was set to take effect on December 21, 2024, and keeping the federal government funded through March 14. The passing of this CR provides much-needed stability for federal agencies, contractors, and employees, and secures essential services across the country.

While the immediate risk has been alleviated, contractors should remain vigilant as fiscal discussions continue. There may be future budget negotiations that could impact long-term contracting stability, and it is important for businesses to stay informed on potential policy shifts and funding priorities. A CR creates many problems for government agencies and the contractors who support them. It puts real constraints on spending – federal agencies will operate under the same funding levels as the previous fiscal year, with minor adjustments made for inflation and urgent needs.

In a December 3 letter to Congressional leadership, PSC (on behalf of its 400+ member companies) strongly urged Congress to pass full-year appropriations for Fiscal Year 2025 (FY25) immediately. PSC highlighted that the Department of Defense and the rest of the federal government would greatly benefit from full-year appropriations. 

Potential benefits include (1) faster replenishment of national defense weapon systems and armaments that had been drawn down to support conflicts in Ukraine and the Middle East and (2) the acceleration of cost savings and operational benefits related to modernizing legacy information systems across all federal agencies. 

“A delay in FY25 appropriations would push back the budgetary process for FY26,” said PSC President and CEO, David J. Berteau. “Time lost under a CR can never be recovered.”

PSC will continue to monitor fiscal discussions and welcome the passing of FY25 full-year appropriations as soon as possible.

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About PSC
PSC is the leading trade association and voice of the government contracting industry, with more than 400 small, medium, and large member companies supporting federal agency missions and functions.
Learn more at: www.pscouncil.org.