Our sources tell us there’s a good chance there will be a Continuing Resolution (CR) this year – especially if the President vetoes the National Defense Authorization Act (NDAA).
Republican leadership is already taking steps to position for a CR as they would much rather have a continuing resolution than allow the government to shut down again.
The point of contention revolves around spending in the Overseas Contingency Operations fund (OCO), which effectively circumvents sequestration. The democrats’ position on sequestration is if you’re going to increase funding for defense then we want funding for other agencies also increased.
By increasing the OCO funding the democrats contend that the GOP leadership is simply circumventing the sequestration caps on defense by using budget gimmickry.
All of this is yet to play out but the bottom line is look for a CR come October.