For most in Washington, last week’s short-lived government shutdown seemed to be mostly an annoyance, causing little more disruption than a passing snowstorm. For federal contractors, though, the stoppage brought fresh worries that the industry’s funding problems are likely to get worse before they get better.
Congress remedied the shutdown not with a grand bargain but with a three-week temporary budget measure that carries last year’s spending levels over to 2018 while lawmakers look for a more permanent solution. Continuing resolutions have been the law of the land for most of the last decade, and many contractors say the stopgaps hamper long-range planning.
The latest partisan battles in Congress have only added new uncertainty, they say, putting a damper on economic activity in the Washington area.
In calls with investors, government contractors said the temporary measures are not only slowing the pace of business, but also could hurt U.S. national security.