The scenarios for a government shutdown and what it would mean for transportation construction contractors.

As you may recall, AGC previously reported on the Senate transportation investment bill as well as the House transportation investment bill. But, with just a little over two weeks until the end of the fiscal year (September 30), Congress is running out of time to pass a spending package. So, what are the scenarios that could play out in the next few weeks? 

Congress could be forced to pass a short-term funding bill, sometimes referred to as a stopgap funding measure, to keep the government open. However, the House Freedom Caucus has made it clear they will not back a short-term funding bill. With a narrow House Republican majority, House Speaker Kevin McCarthy can only lose a few votes, which makes even passing a short-term funding bill a challenge.

One other possibility is the passage of a “minibus” bill that combines Agriculture-FDA, Military Construction-VA, and THUD (Transportation and Housing and Urban Development) appropriations bills. The Senate has taken procedural steps to pass this “minibus” which would eventually allow them to conference with the House for funding these agencies. Getting all of this done before September 30^th could be a challenge, but AGC is optimistic.

And, if Congress can’t reach an agreement on these scenarios, there would be a government shutdown. In preparation for that scenario, we want to remind you what a government shutdown would mean for transportation contractors.