Our elected representatives and national leaders have many important responsibilities and work to do on behalf of the nation and its citizens. Providing for the common defense is the most fundamental of these for the federal government, and that only the federal government can do. For the US Congress this duty means enactment of annual appropriations bills to fund the government in carrying out the programs and activities directed by law and in the interest of the American people. The first of which is national defense.

It is imperative that the executive and legislative branches of government work together on budget agreements that enable congressional action on spending bills that the president will sign into law before the end of the fiscal year on September 30.

Yet, we see repeated failure, in part or in full, in accomplishing this most fundamental task on time. In all but three of the last 47 years, the federal government has operated under continuing resolutions (CRs) which essentially extend last year’s funding and priorities into the new fiscal year to avoid a lapse in appropriations and government shutdown until regular annual spending is enacted. For defense, this has meant operation under CRs for 1,600 days over the last 13 years.

Temporary and restricted spending under CRs is expensive and damaging to national security. The longer the CR, the more the damage. Marine Corps Commandant David Berger has said that continuing resolutions are “backward looking, destabilizing and decelerating” and that “future budget certainty—adequate, stable and predictable funding—is the single most effective way to maintain critical strategic momentum as we compete with the pacing threat and enables investment in the force design and modernization required to prevent or prevail in future conflicts.”

If the fiscal year defense 2024 budget, which is currently pending before Congress, is not enacted by September 30, 2023, starting on October 1, we as taxpayers will lose at least $180 million per day in buying power for defense, more once we factor in real inflationary projections and any funding congress may add during their development of the appropriations bill. That amount of money, from just one day lost under a CR, could buy 488 Javelin advanced anti-tank weapons or 958 guided multiple launch rocket systems.  

We will also lose time that can’t be bought back. Proposed investments in industrial base capacity, new research efforts, improved and expanded capabilities in the Pacific, and procurement increases for munitions and missiles will not be possible under a CR. As Air Force Chief of Staff CQ Brown well put it: “All the money in the world cannot buy more time; time is irrecoverable, and when you are working to keep pace against well-resourced and focused competitors, time matters.”

It is not hard to discern who gets hurt by CRs. In addition to national security consequences to defense programs and personnel, negative impacts are felt by every community, business, and partner that engages with or supports the Defense Department. From the company that cuts the grass on a military base to the small business that provides child care or food service the uncertainty inherent in CRs also hits those who can least afford financial disruptions. In the long term, it is our national security and place as a global leader that suffer. In fact, China and other adversaries of the US are the only ones who would benefit if work on annual appropriations remains undone this fall.

With this in mind, it is important to keep a keen eye on the clock.  

There tends to be a lot of urgent and interesting issues and work to distract our lawmakers.  A habit recommended for highly effective people—the main thing is to keep the main thing the main thing—applies here.

While the calendar may show months between now and September 30, the number of actual days for the conduct of legislative business is much less. As of April 6, 2023, and subject to change by House or Senate leadership, that countdown clock stands at 49 days when both the House and Senate will be in session.

Given recent history, expectations for successfully negotiating a budget deal and enacting appropriations on time are low. But the stakes are high and time is short.

This combination presents a stirring opportunity for our national leaders in the White House and for every member of Congress not just those with committee assignments of jurisdiction. If they work together now, they can easily jump the low bar of expectations and get the job done for the nation and those who defend it, saving time and money along the way.

The post Time is Money—The Importance of On-Time Annual Appropriations appeared first on American Enterprise Institute – AEI.