Congress Meets to Make Spending Decisions Federal procurement budgets for the rest of fiscal 2011 may be set during the current lame-duck session of Congress, while Republicans gear up for spending cuts that would hit contractors hard beginning next year. Agencies are now operating under a continuing resolution setting most funding at 2010 levels, but that expires Dec. 3. While the Democratic majority may move to consolidate and pass a dozen 2011 spending bills, Republicans are pushing for a short-term extension of spending authority so they can impose deep cuts when they take control of the House in January. The next Speaker of the House, John Boehner, and other Republican leaders have pledged to roll back spending to 2008 levels, before the economic stimulus and financial bailouts kicked in. Budget analysts say that would amount to an across-the-board cut of about 20%. But the Republican proposal exempts defense, homeland security and veterans benefits, meaning the cuts would fall more heavily on other programs. Debate over taxes will take center stage during the lame-duck session, but Congress may also tackle the 2011 defense authorization bill, a frequent catch-all for changes in contracting policy. Chances for passing that bill will hinge on the debate over repealing the “Don’t Ask, Don’t Tell” policy regarding gay service members.