This seems like a great
Reason to avoid hiring as much as possible , and use contractors for any work that could potentially be lost by non-renewal of contracts or program cancellations.
On the contractor front though, you aren't going to remotely get the best and brightest by going that way, not unless you're actually contracting with industry leaders who are going to be charging way more than FTEs will cost you (and there aren't that many industry leaders). There are so many good tech companies out there offering FTE positions, so a company offering a lower-paid, lower-benefits contracting positions is simply not going to be competitive in the labor marketplace.