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Prepare for a Federal Government Shutdown

dome of US capitol buildingAGC of America provides resources for federal, transportation, and utility contractors to review and consider as the federal government appears likely to shut down on Oct. 1.

With Congress unlikely to reach an agreement to fund the government in the new fiscal year starting October 1, AGC of America has a resource for direct federal, transportation, and utility contractors to consider detailing the potential impacts of such an event on their projects and how they may want to prepare.

Entitled “What to Know in the Event the Federal Government Shuts Down,” this AGCA resource document also includes links to federal agency-specific contingency plans, in addition to a comprehensive list of all federal agency contingency plans in the event of a shutdown.

As it stands, Congress has not passed any of the 12 annual appropriations bills needed to fund federal government agencies in the new fiscal year 2024, which begins October 1. To avoid a shutdown, Congress traditionally passes a stop gap measure called a “continuing resolution” (CR) to fund the government at the same levels as the previous fiscal year.

House Speaker Kevin McCarthy, however, cannot reach agreement among House Republicans on a CR because several members of his caucus refuse to support it, amid a razor thin Republican House majority. In addition, House Democrats are not offering significant lifelines to help Speaker McCarthy, nor is the Senate. The Senate passed a CR that also included funding for the war effort in Ukraine and disaster aid for communities impacted by wildfires, hurricanes, and other recent natural disasters. But this CR is unlikely to pass in the House at the moment, because many House Republicans oppose Ukraine funding, among other things.

Assuming no agreement to fund the government is reached and it the federal government shuts down; it is unclear how short or long such a shutdown will last. AGCA will continue to provide updates on construction specific impacts or considerations concerning a shutdown.

For more information on the impact to federal contractors, contact Jordan Howard.

For more information on the impact to transportation and utility contractors, contact Alex Etchen or Deniz Mustafa.

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