Potential Flexibility for States During Shutdown
Most discretionary programs (and some mandatory programs funded in appropriations acts) are affected by the government shutdown in that no new money is available during the lapse in federal budget appropriations. While Congress is considering legislation to ensure that federal workers are paid during the shutdown once appropriations are enacted, it has not addressed whether states would be reimbursed for any state funds used to run federal programs. The Office of Management and Budget (OMB) said it will advocate for such reimbursement, and several agencies have advised states that federal reimbursement will be allowed, unless Congress specifies otherwise.
This brief is designed to help states assess their options for funding programs during the appropriations lapse, as well as to determine how specific programs may be affected.