Government Contract Funding Under Continuing Resolutions

Abstract

Conflicts between the President and Congress over major budget priorities, usually triggered by growing deficits, have increased the difficulty of reaching agreement on regular appropriations acts, causing delay in their enactment. The frequent result has been the passage of separate or omnibus continuing appropriations acts in order to fund government operations, either on an interim or a full-year basis. In order to keep the government operating in fiscal year 2011, Congress has passed several short-term continuing resolutions (CR), the latest one of which funds the Executive Branch through March 4, 2011. For government contractors, the use of CRs in place of actual new appropriations has serious consequences, many of which are neither even recognized nor often well-understood. CRs can also substantially affect government agency operations and program continuity. This paper will explain the applicable basics of federal appropriations funding law and regulation, as well as some key potential business consequences of continuing resolutions to the contracting community.