Possibility of Government Shutdown Remains Uncertain

Because of the uncertainty of government funding over the next few days, AGC has compiled a Government Shutdown Resource Center that includes information on what contracts will be in jeopardy and which will be unaffected.  The document also gives advice on how to proceed with federal owners if certain approvals may be needed or if there are question about how to bill costs associated with delays caused by the government shutdown. Congress Remains at an Impasse Following 21 hours of theatrics on the Senate Floor by Senator Ted Cruz (R-Texas) over defunding Obamacare, the Senate voted to proceed to consideration of the House-passed continuing resolution (CR) by a vote of 100-0.  The House-passed CR included language about defunding Obamacare; however, following the unanimous Senate vote, Majority Leader Harry Reid (D-Nev.) started the process towards amending the House CR and, through Senate procedures, he has ensured that no other Senators can offer amendments.  Votes on the Senate amendments will continue tomorrow and through the weekend. The Senate CR makes a series of substantive changes to the House-passed CR, including: changing the expiration date from Dec. 15 to Nov. 15, eliminating language that prioritizes certain payments if Congress fails to increase the debt limit and removing the language defunding Obamacare.  The Senate is on schedule to pass their CR on Saturday, if not earlier.  The CR will then head back to the House where its fate is uncertain. House Republican leaders will have to decide whether to pass the amended bill or send it back with changes.  If the House decides to amend the Senate bill, all 100 Senators would have to unanimously support the House-amended bill in order to get it the President’s desk by midnight on Sept. 30 to prevent a government shutdown.  If the House employs that strategy, there is the potential of a one-week CR that would provide the House and Senate time to pass yet another, longer CR. The situation is, and will likely remain, very fluid leading up to next Monday.  House Republicans have yet to find consensus regarding an end-game strategy.  It is clear that leadership wants to pass a CR and avoid a shutdown of the government and instead, rally their conservative members for the debt-limit battle.  The House will initiate the battle this week when they will unveil their debt limit legislation.  The debt limit package is expected to include a suspension of the debt limit until the end of Dec. 2014, a one-year delay of Obamacare, tax reform instructions, House-passed energy and regulatory bills (i.e., Keystone Pipeline and Coal Ash) and mandatory spending reforms.  The debt ceiling needs to be raised no later than Oct. 17 according to a letter to Congress from Treasury Secretary Jacob Lew.  The debt limit strategy being employed by the House is opposed by the president who prefers a clean increase and continues to refuse to negotiate over raising the debt ceiling. Congress has once again backed itself in a corner and continues its pattern of governing via crisis and short-term extensions.  How these two issues will ultimately be resolved is unclear. AGC is joining more than 175 other groups urging the House and Senate to finalize work on a continuing resolution and an increase in the debt limit so that they can deal with the real causes of the country’s long term debt problems. The letter – which will go to all members of the House and Senate tomorrow – says in part, “Congress cannot continue ‘kicking the can down the road:’ it’s time to take corrective action to address the unaffordable path of entitlement spending, to stabilize federal finances and to undertake fundamental tax reform to strengthen the American Economy.” For more information, please contact Sean O’Neill at (202) 547-8892 or oneills@agc.org.