Author: Emma Kromer

As of October 1, the Federal government has shut down due to the lack of a new spending bill or continuing resolution. While some projects may move forward, contractors should be aware of potential impacts:

• Fully funded fixed-price contracts will generally continue, unless an explicit stop-work order is issued.
• Projects on federal property may face restricted site access, especially at military facilities or federal office buildings.
• Incrementally funded projects may be halted if no funding is available to continue payments.
• Invoice processing and payments may be delayed.
• New contracts, options, or modifications will not move forward unless tied to an exempted agency.

The NECA Government Affairs team is actively monitoring the situation and updating guidance for contractors. Visit the Government Affairs page at necanet.org for the latest information.

The latest state revenue forecast shows a troubling drop in tax collections and continued budget uncertainty.

• Since June, revenues are down more than $600 million, with adjustments pushing the real reduction closer to $845 million.
• Federal changes under HR1 could also reduce Oregon’s tax receipts by $888 million for 2025–27 and cut federal funding by over $1 billion in the same period.

Additional context from the forecast:

• Population growth is slowing, with deaths now outnumbering births; future growth will come from net migration.
• Oregon’s unemployment rate is higher than the national average.
• Job creation is strongest in secondary metro areas, while high-income private sector jobs are declining.
• Policy changes such as new deductions and adjustments to the SALT formula are expected to further reduce state revenues.

While forecasters caution that these numbers may shift later in the biennium, policymakers are preparing for potential shortfalls.

📄 Read Mark Long’s full article here.