Q&A: Potential Impacts of a Government Shutdown on State Grant Programs

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A government shutdown looms. No final fiscal year (FY) 2025 appropriations bills have been enacted, and a continuing resolution (CR) that has kept the government operating at FY 2024 levels expires on March 14. While a brief shutdown would be of minimal consequence, each additional day would increase the disruption.

The impact of an extended shutdown would vary by program. Most discretionary grant programs—plus mandatory programs funded in appropriations acts—would be affected because no new funding would be available.

FFIS periodically addresses the risks to states from federal government shutdowns. The questions and answers are generally the same from year to year and are summarized within. What is different this time is the political and budgetary environment.

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