Continuing Resolution Restores Funding for Federal Modernization Efforts

Congress passed the the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act this week, ending the 43-day government shutdown and extending fiscal 2025 funding into early 2026. The legislation enables agencies to restart operations at prior-year levels and preserve critical cybersecurity and IT infrastructure.

According to the bill text, funding will continue “at a rate for operations as provided in the applicable appropriations Acts for fiscal year 2025,” ensuring that no major tech initiative is defunded midstream.

The stopgap measure reverses mass furlough and guarantees back pay for federal employees, providing an essential stabilization of the IT workforce, according to members of Congress.

Backing Digital Transformation at USDA

The Department of Agriculture section of the bill supports digital transformation, including precision agriculture tools, data analytics platforms, and rural broadband expansion. The extension allows USDA to continue its partnerships with private sector providers to improve internet connectivity in underserved areas. Additionally, the bill reopens the USDA’s Farm Production and Conservation mission area, which uses geospatial data and AI to manage crop insurance and disaster relief.

Funding Rapid Prototyping at the Air Force

The bill calls for funding for the Air Force’s E-7 Wedgetail program, authorizing up to $199.7 million for “rapid prototyping activities to maintain program schedule and transition to production” for the initiative. An additional $200 million in unobligated aircraft procurement funds is reallocated to support airborne early warning modernization.

Resuming Modernization Efforts at VA

The bill restarts the VA’s Electronic Health Record Modernization (EHRM) initiative, which aims to unify veteran health data across VA and Department of War systems. The shutdown had paused testing and deployment at several sites, delaying interoperability goals. The VA’s Office of Information and Technology can reengage contractors and resume rollout schedules for the EHRM program.

The legislation also supports cybersecurity upgrades across VA networks, which faced staffing and maintenance gaps during the shutdown. Continued funding ensures that zero-trust architecture implementation and cloud migration efforts can proceed without delay.

Digital services for veterans — such as online claims processing, telehealth platforms and benefits portals — are also back online. These services rely on stable appropriations to maintain performance and accessibility.

Bolstering Pentagon’s Physical, Digital Infrastructure

Military construction funding in the bill supports not only physical infrastructure but also digital infrastructure at military installations. This includes secure networks, smart base technologies and cyber defense systems. The extension ensures that the Pentagon can continue implementing zero-trust architecture and upgrading legacy systems across its facilities.

The bill also indirectly supports the Cybersecurity Maturity Model Certification (CMMC) rollout, which had been delayed due to contract and staffing disruptions. The Pentagon can now reengage with industry partners to ensure CMMC compliance and secure the defense industrial base’s cyber footing.

According to the Professional Services Council, member contractors and agencies can continue to further mission and support cyber readiness.

“As the government reopens, it’s critical that policymakers consider the unique impacts on the contracting community and take steps to prevent this kind of unnecessary disruption from happening again,” said PSC Board Chair Zach Parker, president, CEO, and board director of DLH Corp. “Restart priorities and processes are also critical to retain military and public readiness as well.”