Source: Office of Speaker Mike JohnsonMomentum is growing in Washington for a year-long continuing resolution (CR) that would run through the remainder of FY25, which ends September 30. FY25 began on October 1, 2024, but the government has been operating under stopgap spending bills that expire on March 14.
Last week, President Trump posted on his Truth Social account that he supported a temporary government funding bill that runs through September. House Speaker Mike Johnson (R-La.) has also said he wants to pass a clean CR to avoid a government shutdown through September, at which point work would shift to the FY26 budget where Congress could begin implementing spending adjustments identified by Elon Musk’s Department of Government Efficiency (DOGE), a Trump administration initiative focused on reviewing government spending and bureaucracy. Republicans initially wanted to begin implementing DOGE cuts immediately in the FY25 appropriations bills, but they would face resistance from Democrats to pass that legislation.
Not every Republican is on board with the proposal for a full-year CR. Former Senate Republican Leader Mitch McConnell (R-Ky.) warned that adopting a CR that runs through the remainder of FY25 would be a “recipe for disaster” that would make it more difficult for the military to counter threats from Russia, China, North Korea, Iran, and other adversaries. He noted that a CR would prevent the Pentagon from launching new programs that were requested in FY25, and the Pentagon’s buying power would decline after adjusting for inflation.
House Appropriations Committee Chairman Rep. Tom Cole (R-Ok.) also has not given up on passing an FY25 appropriations bill. “I remain fully committed to driving bipartisan cooperation to pass a continuing resolution that prevents a shutdown and to finalizing an agreement on FY25 funding,” he said in a statement Monday.
A long-term CR could contain exemptions, formally known as anomalies, for certain programs. For example, a stopgap spending proposal reviewed by USNI includes exemptions (anomalies) to maintain Navy shipbuilding programs and provide a pay increase for junior enlisted service members. However, dozens of new start programs would still be frozen under a long-term CR, and many more could remain underfunded.
Further, failure to pass FY25 appropriations would trigger a sequestration mechanism contained in the Fiscal Responsibility Act of 2023, which would reduce funding to FY23 levels minus an additional 1% for the remainder of FY25. Forecast International’s U.S. Defense Budget Spotlight projects a sequester could result in a loss of over $10 billion for acquisition programs over the coming year (excluding anomalies), compared to President Biden’s original FY25 request. Rep. Cole said he received “verbal assurance” from the Office of Management and Budget that a long-term stopgap would not trigger sequestration. “But I don’t have a piece of paper that says that, and I wouldn’t trust it until I do,” he added.
For now, the March 14 deadline for Congress to choose its path forward and avoid a government shutdown is fast approaching.
Shaun's deep-rooted interest in military equipment continues in his role as a senior defense analyst with a focus on the United States. He played an integral role in the development of Forecast International's U.S. Defense Budget Forecast, an interactive online product that tracks Pentagon acquisition programs throughout the congressional budget process. As editor of International Military Markets – North America, Shaun has cultivated a deep understanding of the vast defense markets in the United States and Canada. He is a regular contributor to Forecast International's Defense & Security Monitor blog and has co-authored white papers on global defense spending and various military programs.
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- Speaker_Mike_Johnson,_unofficial_portrait: Office of Speaker Mike Johnson
