Washington is once again racing the calendar. With the federal fiscal year starting October 1, Congress has under three weeks to pass full-year appropriations or—more likely—a continuing resolution (CR) to keep government programs funded. Appropriations leaders in both chambers are signaling they prefer a short CR to keep pressure on a larger budget deal, while the White House has pushed for a longer stopgap in recent discussions.
Why this matters to small businesses
One major point of contention is whether a CR will include an extension of the enhanced Affordable Care Act premium tax credits that are scheduled to end with the calendar year. Extending those subsidies would add to federal spending (analyses have put an annual cost on the order of tens of billions), but letting them expire could cause very large premium increases for Marketplace enrollees — in some projections average premiums could rise dramatically for many families. That shift would affect employees who buy coverage on the exchanges and could increase employer pressures around benefits and wages. Oliver Wyman+1
Shutdown risks and costs
While a shutdown is sometimes framed as “saving money,” past shutdowns have produced real costs — lost productivity, agency restart costs, and guaranteed back pay for furloughed federal employees under current law — and can create disruption in services many small businesses rely on. GovInfo+1
What small businesses should do now
• Monitor developments through late September; expect more bargaining and political messaging before a CR is finalized. Reuters
• Review your employee benefits communications and budget scenarios in case Marketplace premiums change for workers. KFF
• Prepare basic contingency plans (vendor notifications, potential service delays for federal permits/grants, and cash-flow sensitivity) so you can act quickly if operations are affected.
Have questions on how this might affect your payroll, benefits, or contracts? Contact our office and we’ll walk through practical next steps for your business.