The federal government is hours away from a shutdown. To date, no final fiscal year (FY) 2025 appropriations have been enacted, and a continuing resolution (CR)—which has kept the government operating at FY 2024 levels—expires at the end of the day.
Should a shutdown occur, state officials will have questions about their ability to operate federal grant programs. First and foremost, a shutdown that lasts only a few hours or days would be of little consequence. A shutdown that extends beyond the end of the calendar year would be more disruptive.
While the impact of an extended shutdown would vary by program, most discretionary programs (and some mandatory programs funded in appropriations acts) would be affected 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. The following questions provide a framework for thinking about how individual grant programs might be affected. Ultimately, the federal government will make final determinations.