March 13, 2025
Averting Government Shutdown
As noted in the Feb. 20 update, the federal government will shut down if Congress does not pass a FY2025 budget by midnight tomorrow, March 14. On Tuesday, the House passed a stopgap measure to fund the government through Sept. 30 on a mostly party-line vote; however, the unique political calculus in each chamber means Congress is bound to negotiate down to the wire. A major sticking point in these negotiations is the size of the federal deficit. A government shutdown would be bad for Georgia’s cities, and GMA urges Congress to find a solution to the political impasse and to avoid a disruption to government services.
One particular concern with Tuesday’s continuing resolution is a 44% year-on-year reduction in funds going to the US Army Corps of Engineers. The Army Corps oversees infrastructure projects throughout our country’s waterways and ecosystems, including flood control and disaster response. In Georgia, the Army Corps is supporting projects such as the Port of Brunswick and the Hyundai plant in Bryan County.
Over the years, the Army Corps has drawn calls from both parties for greater efficiency in project execution and has been a recent target of the Department of Government Efficiency. On Wednesday, the Army Corps extended eligibility of the federal buyout program to 1,068 employees, about 3% of its civilian workforce, signaling another effort within the federal government to shrink the workforce.
Tuesday’s measure also excluded FY25 Congressionally Directed Spending requests, leaving those projects unfunded. Several congressional offices are actively accepting requests for FY26. If your city is looking to submit a project or resubmit a project from FY25, inquire with the relevant congressional office. For more information, see Congressional Appropriations Requests: What Cities Need to Know.
This week, the House and Senate also began to deliberate in earnest the contours of the next tax bill. GMA will be sure to keep you up to date in a future This Week in D.C. as these deliberations proceed, and we will pay close attention to any possible implications for tax-exempt municipal bonds.