FAQs: Potential Impacts of a Government Shutdown on State Grant Programs

The federal government is days away from a shutdown. To date, no fiscal year (FY) 2024 appropriations have been enacted, nor has a continuing resolution (CR), which would keep the government operating at current-year levels.

Should a shutdown occur, state officials will have questions about their ability to operate federal grant programs. While the answers to those questions vary by program, most discretionary programs (and some mandatory programs funded in appropriations acts) would be affected by a shutdown because no new funding would be available during a lapse in appropriations.

A recent Q&A from the Committee for a Responsible Federal Budget provides useful information about shutdowns in general. In addition, agency contingency plans provide specifics on how departments will handle a shutdown.