# Continuing Resolution Delays FY2027 Defense Programs

FY2027 began on October 1, 2026, without Congress enacting all regular appropriations, leaving federal operations under a continuing resolution through December 11, 2026. For the Pentagon, the CR restricts the start of new programs and places more than 150 FY2027 budget-listed efforts—including drone, missile defense, hypersonic, naval, aircraft, and space programs—at risk of delay. Contractors face funding and schedule uncertainty; the CR’s expiration alone would not ensure programs can proceed.

- Contractors should confirm funds are actually obligated before beginning work or incurring costs that depend on the funding, and review option and performance-period dates.
- Distinguish base-budget funding from amounts dependent on reconciliation or a future appropriations bill when assessing program exposure and planning production or staffing.
- Preserve documentation supporting funding, contract changes, claims, and compliance; review solicitations and agency guidance for changes tied to appropriations.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** October 02, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- Congress
- U.S. Space Force (USSF)

### Vendors
- General Atomics (Selected contractor to build Collaborative Combat Aircraft drone wingmen)
- Anduril (Selected contractor to build Collaborative Combat Aircraft drone wingmen)

### Key Quotes
> It's gonna slow us down, and the threat is not slowing down, so we have to continue to get after that. So I just urge our congressional colleagues and folks to get after getting us the budget.
> — Douglass Schiess, Chief of Space Operations, U.S. Space Force

### Sources
- [A New Fiscal Year Begins: Key Considerations for Government Contractors | Bradley Arant Boult Cummings LLP - JDSupra](https://www.jdsupra.com/legalnews/a-new-fiscal-year-begins-key-3490092) - JDSupra
- [Can't start, won't start: Over 150 new military programs face delay under a CR - Breaking Defense](https://breakingdefense.com/2026/10/cant-start-wont-start-over-150-new-military-programs-face-delay-under-a-cr) - Breaking Defense