The federal government shut down yesterday, October 1, after Congress failed to pass a Continuing Resolution to fund operations for the new fiscal year. This immediately affects several federal programs, including FEMA’s Disaster Relief Fund and the Women, Infants, and Children (WIC) nutrition program, which could run out of funding within days. Mandatory programs like Social Security, Medicare, and VA medical care will continue, though related services may be disrupted.
The Congressional Budget Office estimates that about 750,000 employees will be furloughed at a cost per day of $400 million.
In an effort to maximize pressure on Democrats, the White House announced it will cancel $8 billion in climate-related investments to blue states, and fired most of the advisory council members for the National Endowment for the Humanities. The White House told House Republicans to expect “consequential” layoffs.
There is no clear path to resolution. Two labor unions have sued the Office of Management and Budget to prevent federal worker layoffs, and some employees have already received termination notices. Speaker Mike Johnson warned of “pain” during the shutdown, and the Trump Administration has frozen infrastructure funds for districts led by Democratic House and Senate leaders.
Nonprofits are directly impacted by this shutdown. Payment processing and contract support may be delayed, while demand for services could rise. Our national partner, The National Council of Nonprofits, has issued an overview of potential harms on nonprofits, a guide for nonprofits on next steps and a press statement addressing the shutdown’s impact.
Nonprofits can take action in three ways:
- Register for NCN’s National Webinar. NCN is hosting a national webinar on Monday, October 6th at 3:00 pm Eastern to share more about what nonprofits need to know about the government shutdown and current federal grant landscape.
- Share Your Story. Use NCN’s storytelling tool to share real examples of how the government shutdown is harming nonprofits and their communities. Sharing these stories is one of the most effective ways to make your voice heard.
- Contact Your Members of Congress. Use NCN’s email template to send a message directly to your Senators and Representatives, urging them to work across the aisle to reopen the government.
Agency Plans
Federal agencies have published their contingency plans, outlining which functions will remain open (and which will close) during the shutdown. See the plans for HHS and HUD below. Additional plans can be found here.
We will continue to update you as we receive more information. If you believe your organization will be impacted, please share with Caroline O’Neill. Please don’t hesitate to reach out with any questions or concerns.
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