Pentagon to continue to draft its FY-27 budget despite lapse in FY-26 appropriations

By Vanessa Montalbano / October 1, 2025 at 4:16 PM
The Defense Department will carry on with activities to develop the fiscal year 2027 budget request in the background of the federal government shutdown, a Pentagon official told Inside Defense . The lapse in government appropriations comes after a deadlocked Congress failed to reach an agreement on FY-26 funding before the clock struck midnight last night. Activities related to FY-27 budget development are considered “excepted,” the DOD official said, adding “some civilians could be excepted to work on excepted activities...

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