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Economic & Budget Watch


The Federal Reserve confirms small businesses are bearing the heaviest tariff burden while the government just mandated fixed-price contracts as the default. That collision — rising input costs locked inside fixed prices — is the defining financial challenge for small business federal contractors right now. Here is the playbook.
June CPI fell 0.4% — the biggest monthly decline since April 2020 — dropping annual inflation to 3.5%. But with energy still up double digits, hostilities reigniting, and fixed-price contracts now the federal default, contractors can't afford to relax. Your inflation playbook.
Three funding lapses hit federal contractors in FY2026 alone. With the October 1 deadline approaching, here's exactly what happens to your contracts, your payments, and your people during a government shutdown — and how to prepare now.
House appropriators are proposing $1.856 trillion for FY2027 — up 13% — but the growth is concentrated in defense and homeland security while non-defense programs shrink. Here's where the money is moving and how to position your pipeline.