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ARTICLE · 26 SEPTEMBER 2023

Government Shutdown: A Contractor's Guide

Mayer Brown
Mayer Brown
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As we head into fall, closing one fiscal year and beginning another, the possibility of a government shutdown has reappeared.

United StatesGovernment, Public Sector
Marcia Madsen
Marcia Madsen
Evan C. Williams
Evan C. Williams
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Additional Author Jason C. Coffey

As we head into fall, closing one fiscal year and beginning another, the possibility of a government shutdown has reappeared. The relevant laws and policies pertaining to US federal government shutdowns have remained constant in recent decades. However, in light of the discretion afforded federal agencies and their officials, it is difficult to forecast precisely how a particular contracting office will administer existing contracts. Below is a practical guide for government contractors to help navigate a potential shutdown and the implications for the contractors and their employees.

Background

Federal agencies require funds to operate and to pay contractors. Generally, these funds are appropriated by Congress in 12 separate appropriations or all together in an "omnibus" appropriations bill for a fiscal year. At present, funding for fiscal year 2023 runs out on September 30, 2023, at 11:59 p.m. EST. If Congress fails to pass

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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