Spending Year End Funds

Fiscal years vary across the map. Some end in June, others in December and the federal budget ends in September. In all those scenarios, it is true that there can be a “spend it or lose it” mentality. Meaning, if you had the budget authority for a certain amount of funding and did not use it in the current budget year, getting that same level of funding back next year might be problematic.

I extracted the information below from a Homeland Security ad that was offering to help businesses tap into the need for federal agencies to spend a years’ worth of funding in six months.

“Now that Congress has at last passed the FY2024 Appropriations bill, federal agencies and program offices have clarity on their official funding levels for the remainder of the year. The first half of FY24 saw agencies operate under the constraints of funding ambiguities due to one Continuing Resolution after another.

Following appropriations passage, agencies and Program Management Offices across the federal government have only six months to spend an entire year’s worth of funding. Decisions will be made fast. All the new funding programs and solicitation opportunities that were locked in a holding pattern since last September will soon be released in large volumes.”

I’m not advocating that anyone go on a “spending spree” but it is worthwhile to get the equipment or whatever else you can “physically take possession of” by the end of your fiscal year to take advantage of the funds you have been allocated.