As Senate Democrats and House Republicans unleashed streams of blame at each other for the fiscal standoff that closed much of the federal government on Oct. 1, construction industry officials were studying how the shutdown will affect federal contracts and grants. Federal construction aid totals tens of billions of dollars a year.
The Office of Management and Budget made clear in a Sept. 17 memo that, during a funding lapse, an agency cannot award, extend or renew contracts or grants "except in very limited circumstances." That restriction applies to fiscal 2014 contracts that would have been funded from the general Treasury through appropriations.