With so much going on in Washington, D.C., we wanted to share a quick update on the potential government shutdown beginning this weekend if the U.S. Congress is not able to agree to compromise or a Continuing Resolution to keep the government open. We know that many of you and your organizations work with the federal government on projects or rely on federal revenue streams to provide critical services and resources to your communities.

For those of you who are preparing an application or progress report for an upcoming submission deadline, you should continue to prepare those documents for an on-time submission and work to get them submitted before the September 30 deadline if at all possible.

We will continue to monitor the situation, and know that the uncertainty that comes with a government shutdown can be very difficult for organizations that work closely with federal partners. IEDC is in close contact with our partners on the Hill in hopes that a government shutdown can be avoided.

In the event of a shutdown, each U.S. agency develops a contingency plan to determine what programs and activities will continue. This website has links to contingency plans for agencies across the Federal Government. The page will be updated as more plans are posted. Below are high-level overviews of some of the agencies' plans that we know are relevant to our members. If you have additional questions or need assistance please reach out and we will do our best to get you any information we can.

Economic Development Administration (EDA)

Some of EDA’s programs are financed by a resource other than current year annual appropriations and will continue to operate during a lapse in appropriations, including those programs that received multiyear mandatory or supplemental appropriations under the American Rescue Plan Act and the Consolidated Appropriations Act, 2023 or that are funded through Federal Emergency Management Agency (FEMA) Mission Assignments to assist and support economic recovery efforts in disaster-impacted communities and regions. Otherwise, EDA will maintain certain functions and activities that are necessary for a short period to ensure an orderly shutdown of operations. Specifically, employee furlough, contractual and building access coordination activities are necessary for at least a full (8-hour) day to ensure orderly shutdown of all the non-disaster related operations in all parts of EDA across all time zones.   

Minority Business Development Administration (MBDA)

Five employees will continue to support the Capital Readiness Program and its grantees given that this program is financed by a resource other than current year annual appropriations. One position will be excepted intermittently to conduct financial management activities necessary to liquidate obligations incurred prior to the lapse in appropriations.

Department of Agriculture Rural Development (USDA)

USDA Rural Development has not released their updated contingency plans. Previous contingencies, which may provide insight into this year's plans, allowed no new loans or grants to be made during the shutdown period except for emergency purposes and to protect the Government’s interest. USDA RD had no program activities that continued in the absence of an appropriation.

Department of Education (ED)

Department of Education has not released their updated contingency plans. Previous contingencies said that programs using mandatory or advance appropriations, or unobligated multi-year or no-year funds from a prior year (carryover) would continue to operate through a government shutdown. For these programs, staff may be brought in on an excepted basis to make payments for loans and grants and Pell grants.

Department of Housing and Urban Development (HUD)

HUD will continue to make previously obligated CDBG, HOME, HOPWA, Homeless Assistance Grants funds, and other grant funds available for drawdown by grantees. Where further action or review by HUD employees is not required for funds to be drawn down from the system, grantees will be able to draw funds normally. Where further action or review by a HUD employee is required before a grantee may access previously obligated funds, HUD will recall employees intermittently to review and approve or deny disbursement requests as necessary to avoid an imminent threat to the safety of human life or property.   

National Science Foundation (NSF)

NSF will use available carryover balances to continue daily operations. Once those balances are exhausted, electronic systems for proposal preparation and submission will remain available for use during a lapse in appropriations, (i.e. Research.gov and Grants.gov). Recipients may continue performance under their NSF awards during a lapse in appropriations, to the extent funds are available, and the period of performance of the grant or cooperative agreement has not expired.

Small Business Administration (SBA)

The SBA has not updated its contingency plans. Previous contingencies have outlined that the below programs will continue during a lapse: 

• Disaster Preparedness & Response 
• Small Business Development Centers, Women’s Business Centers, SCORE, and Veteran Business Outreach Centers 
• HUBZone 
• Certified Development Company (CDC) 504 Loan Program 
• Microloan Intermediaries 
• Preferred Surety Bond (PSB) Program 
• Native American Outreach
• National Women’s Business Council 
• Small Business Investment Company (SBIC) Debenture Program 
• Procurement Set-Aside 
• Credit Risk Management 
• Small Business Innovation Research Program (SBIR)/Small Business Technology Transfer Program (STTR) 
• Work supporting programs funded under the American Rescue Plan

Department of Energy (DoE)

Performance of contracts and financial assistance instruments continue in accordance with their terms, including any provisions about limitations of funding. However, depending upon the length of the lapse of the appropriations, whether Government oversight is needed, and the availability of prior-year funding, the Department may need to review the activities of its contractors and only those activities where the suspension of the function of the contract would imminently threaten the safety of human life or the protection of property would be permitted to continue.