As we stand on the precipice of a new fiscal year, set to begin on October 1, 2023, Congressional leaders continue to wrestle with funding the federal government via the appropriations process. This is one of the central pillars of managing “discretionary spending”, a crucial part of the federal budget allocation.
The term “discretionary spending”, might seem like bureaucratic jargon, but it essentially refers to those spending areas that are not pre-determined by authorizing laws that establish various programs or federal agencies. This distinct type of federal spending level encompasses almost all defense spending, including operating budgets of civilian agencies ranging from medical care for veterans to education grant programs.
This vitally important appropriations process has recently caused some degree of political tension and turmoil. Controversially, repeated difficulties in passing appropriations bills on time have led to a procession of stopgap funding measures known commonly as “continuing resolutions”. The looming threat of federal government shutdowns often provokes the use of these temporary solutions to keep the government running.
This cycle of funding crises and their respective resolutions seems almost repetitive in its nature, resembling somewhat the classic French saying of “déjà vu all over again”. It is worthwhile for legal professionals, particularly those working for large corporations and law firms, to keep a close eye on this dynamic because it often bears implications for businesses and the wider economy.
The full breakdown of the appropriations process and its implications can be found in an article penned by McGuireWoods Consulting, available at the following link: Déjà Vu All Over Again: Continuing Resolutions and Government Shutdowns.