The government shutdown and how it affects businesses

This morning, the Federal government entered a shutdown, meaning that non-essential services will cease operations until a funding deal has been agreed to by Congress and signed by President Trump. It is currently unknown how long this impasse will last. Speaker of the House Mike Johnson passed the House’s stopgap proposal then adjourned the House, meaning representatives likely won’t be called back to the Capitol until next week. 

Potential business impacts 

• Expect to see delayed payments on contracts and grants administered by the federal government. 
• Both civilian and enlisted Department of Defense staff will likely see pay paused until the shutdown is resolved. Those individuals will receive backpay when the government reopens. 
• Federal permitting will be delayed until the impasse is resolved. 
• Export/Import enforcement will likely be delayed with fewer workers on the job at ports of entry. 
• Flights may be impacted with potentially fewer air traffic control (ATC) staff, meaning fewer flights per day across the U.S., depending on staffing levels. ATC staff are considered essential, but it is typical for controllers to call out during a shutdown. 
• USDA payments to farmers and the agriculture industry may be paused. 

Key takeaway 

If your business interacts regularly with federal agencies, or you have funding tied to federal contracts or grants you may experience some short-term impacts or delays. If your business generally does not deal in these spaces, expect to see more limited impact on day-to-day operations. 

Find out more about the shutdown and how it could affect your business.