TechAmerica warns of shutdown consequences

A shutdown of the federal government would have adverse consequences for hundreds of companies that contract with the U.S. government and more than 7.6 million federal contract employees, Phil Bond, president and CEO of TechAmerica, warned Democratic and Republican leaders in both chambers in a Tuesday letter. While he applauded Congress for agreeing to a Continuing Resolution to keep the government operational for the next two weeks, he strongly urged lawmakers to pass a broader funding measure for the remainder of fiscal 2011.

"The on-again, off-again nature of the current budget debate in conjunction with the on-going, looming possibility of a government shutdown has brought business between contractors and the federal government to a virtual standstill," Bond wrote. "This climate of uncertainty has resulted in an adverse ripple effect causing the private sector and government agencies to halt or freeze advances in government services largely due to the current unresolved long-term budget situation," he added.

TechAmerica, with more than 1,200 member companies, is the largest association in Washington representing the interests of the technology sector.