Is a Continuing Resolution Freeze on the F.Y. 2019 Budget Likely?

If you’re wary that the mid-term elections will throw a monkey wrench in the F.Y. 2019 defense appropriations and authorization bills, you certainly won’t be the only one. The results of the election will greatly influence control of the House, and how many dollars will be earmarked for defense contractors, who are one of the biggest winners from the Trump presidency in terms of dollars and cents. Should we experience a “Blue Wave” and Democrats take control, defense contracts would likely find jaundiced eyes reviewing upcoming spending, and thus, a Continuing Resolution would be all the more likely.

On June 13th, the House Appropriations Committee passed a F.Y. 2019 defense spending bill which allocates a massive Continuing Resolution 2019 Fiscal Year$674.6 billion in total spending. This including $606.5 billion to the Pentagon and $68.1 billion for overseas operations. On June 18th, the Senate passed its own version of the F.Y. 2019 defense spending bill which is more policy-based. Both the House and Senate will have to work out their differences in the coming months. Should we run into the (almost inevitable) Continuing Resolution, it would freeze funding at F.Y. 2018 levels, which were the highest in 15 years for the D.O.D. at approximately $700 billion.

As it stands, the House has appropriated nearly $198 Million to operations and maintenance, which is 5% higher than F.Y. 2019, which is a boon for many of our clients in the Professional Services/IT companies.

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