Dept. of Defense Faces Shutdown Amid Continuing Resolution Uncertainty

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On March 14, the current continuing resolution (CR) funding the Department of Defense (DOD) and the rest of the federal government for FY 2025 will expire, and a government shutdown will take effect on March 15 at midnight if Congress does not act.

On Tuesday, March 11, the House of Representatives passed H.R. 1968 to extend the CR through the end of FY 2025 on September 30, but Senate Democrats oppose the measure in favor of a short-term CR. 

  1. DOD has consistently started the fiscal year under a CR, which typically extends funding for programs at the level appropriated in the previous fiscal year and does not fund "new start" programs. Since FY 2000, DOD has started the fiscal year with regular appropriations six times, and only once since FY 2010. The longest delay occurred in FY 2017, when the government operated under multiple CRs until May 5, 2017. 

  2. However, DOD has never operated for a complete fiscal year under a CR. The House bill calls for a full-year CR but outlines unique provisions for defense spending not typical under a standard CR. It specifies amounts for defense appropriations accounts for FY 2025, adjusting funding above or below FY 2024 levels, and provides DOD with significantly greater flexibility to spend those funds than it would typically have under a CR. While it increases national defense funding approximately $6 billion above FY 2024 spending levels, the bill’s $892.5 billion falls below the Biden administration’s initial $895 billion request for FY 2025. 

  3. The bill will require bipartisan support to pass the 60-vote threshold for cloture in the Senate, but Democrats prefer a short-term CR through April 11 in order to pass full-year appropriations. If Congress fails to pass a CR, a government shutdown will take effect on March 15, and DOD would continue to perform only essential work to “defend the nation and conduct ongoing military operations.” Active-duty military personnel must continue to carry out assigned duties without receiving pay while DOD civilian employees would largely be furloughed unless they perform “excepted” activities.