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Water Funding and Federal Projects in Limbo as Government Shutdown Looms

Congress appears far from meeting its requirement to pass multiple annual appropriations bills by Sept. 30 in order to avoid a government shutdown. Hard right elements of the Republican majority continue to hinder Speaker McCarthy's efforts to even pass a continuing resolution which only represents a temporary, stop-gap measure providing partial funding in an effort to gain more time for negotiation.

What does this mean for contractors? NUCA members may be facing stoppages on their federally financed projects due to the closure of federal offices and thus the ability for government oversight. Funding delays are also possible when working as government contractors. While federal employees will receive back pay, contractors will not. If a lengthy shutdown occurs, the project contracting officer can provide further information.

The extent to which water funding will be cut, or reinstated, also remains unclear. The good news is that the Senate, in a bipartisan manner, has stepped up with a continuing resolution that will fund the government at fairly consistent levels until mid-November. It is still unlikely that McCarthy can secure enough support from his party in the House to pass this measure. It may take a shutdown along with some level of cooperation between moderate Republicans and House Democrats to force action on the compromise and reopen government.

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