3 Things You Should Know About the FY16 Omnibus

by Chris Wiedemann, Senior Analyst

Late Tuesday night, news broke that a spending deal was agreed on by both the House and Senate. Barring an unforeseen emergency or last-minute change of heart, it now looks like the remainder of the fiscal year will be funded by an Omnibus appropriations bill. This is obviously great news for both the government and their industry partners — as a full-year Continuing Resolution (CR) would have frozen many new programs and investments.

At first glance, the Omnibus itself reveals some interesting details that could affect the IT community at large.

Here are three things you should know about the new appropriations package:

1. Not a Law Just Yet

Although both the House and the Senate have agreed on the broad terms of the bill, neither chamber has actually voted on it — and the earliest they are likely to do so is tomorrow. This means that another short-term CR will be necessary to avoid a temporary shutdown.

2. Quid Pro Quos Seal the Deal

Although the most controversial social policy riders were kept out of the law, there were some quid pro quos – for example, the ban on crude oil exports was lifted in exchange for tax credits for renewable energy companies. More relevant to industry, funding for two controversial agencies (the IRS and the EPA) was frozen at FY15’s level, meaning reps selling to those territories should expect their customers to face funding challenges and plan accordingly.

3. Some Agencies Came Out on Top

Specifically, NASA, DHS, and parts of DOJ are anticipated to receive more funding than they requested in FY16. The bulk of their increased spending will be focused on space exploration (NASA) or national security programs.

We will be digging deeper into this year’s Omnibus package in the coming weeks, so be sure to check back weekly for more detailed information on what the appropriations bill means for you and your sales strategy.

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