PSC Letter to Congressional Leaders Sent on Sept. 26, 2025

Download pdf 

Dear Majority Leader Thune, Minority Leader Schumer, Speaker Johnson, and Minority Leader Jeffries:

On behalf of the Professional Services Council (PSC)—and the 400 PSC member companies that support federal agencies through mission-focused services and solutions—I write to urge Congress to act without delay to pass one or more appropriations bills that will help avoid a lapse in appropriations and the resultant shutdown of the federal government. From an industry perspective, it is critically important to keep the federal government open, ensure delivery of essential solutions to the American people, and avoid the damaging consequences of a federal government shutdown.

As you know, a shutdown disrupts efficiency and effectiveness of agency operations, threatening the ability of agencies to achieve their vital missions. Federal agencies leverage the capabilities of contracting partners to sustain critical operations in defense, cybersecurity, public health, and infrastructure. When funding lapses, projects stall. Procurement cycles are interrupted. Vital work is delayed. National security and emergency preparedness are particularly at risk, as shutdowns impede work on classified systems, intelligence operations, and defense logistics—work that is indispensable to protecting and serving U.S. citizens at home and abroad.

In addition, shutdowns have a significantly destabilizing effect on the contracting workforce and inflict lasting harm on the U.S. business base. Contractors are not only mission partners; they are also over a million constituents and taxpayers in all 50 states, and they rely on stable sources of income for their livelihoods. Unlike federal employees, contractor employees are not guaranteed back pay once a shutdown ends, assuming that they have not been furloughed or laid off during the lapse in appropriations.

Aside from the impact on individual lives, the result throughout the government contracting industry is a diminished talent pipeline, weakened morale, and the loss of specialized expertise that agencies need to meet their missions. Prolonged funding uncertainty not only disrupts today’s missions, but also jeopardizes tomorrow’s innovation, resilience, and competitiveness.

Finally, shutdowns weaken the broader economy. The 2018–2019 partial shutdown cost the U.S. economy at least $11 billion with $3 billion in permanently lost Gross Domestic Product, according to the Congressional Budget Office. Small and mid-sized businesses—many of which cannot withstand prolonged disruptions—face existential risks. Of course, we also know that shutdowns are profoundly inefficient: every day the government is closed requires several days of recovery, wasting taxpayer dollars, delaying new initiatives, and forcing agencies and companies alike to repeat administrative processes.

For these reasons, PSC strongly urges Congress to avoid any lapse in appropriations by ensuring timely passage of appropriations bills. The American people—including military personnel, federal civilians, and contractor employees—deserve stable, predictable funding and uninterrupted provision of government services, and our nation’s contracting partners stand ready to support those federal mission sets with unparallelled capabilities, innovation, and commitment.

Sincerely,

James W. Carroll
CEO
Professional Services Council