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ARTICLE · 08 OCTOBER 2025

Shutdown Alert: Impacts And Contractor Preparedness

Taft, Stettinius & Hollister LLP
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On Sept. 30, 2025, the federal government officially shut down after Congress failed to reach an agreement on either a short-term continuing resolution or a broader budget bill to fund government operations.

United StatesEmployment and HR
Suzanne Sumner
Suzanne Sumner
Jennifer Brumby
Jennifer Brumby
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On Sept. 30, 2025, the federal government officially shut down after Congress failed to reach an agreement on either a short-term continuing resolution or a broader budget bill to fund government operations.

Most of the federal government has ceased to operate. The regulations governing federal government shutdowns divide federal activities and employees into "excepted" and "non-excepted" personnel. Only those activities and personnel that are "excepted" have continued to operate, unless an agency has a separate funding source. Some "excepted" federal functions that have continued include those related to national security, such as the military (though servicemembers' pay may be delayed), functions related to the protection of life and property (air traffic control, prisons, federal law enforcement, etc.), Social Security payments, the United States Postal Service, and the Federal Reserve.

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