As of midnight this morning, funding for the federal government officially lapsed with the start of a new fiscal year (FY).
- Late on Tuesday evening, HUD published its 2025 Contingency Plan for Possible Lapse in Appropriations.
- Federal agencies will operate with only a limited “excepted” staff, who are permitted to continue work solely on activities also classified as “excepted.”
- OMB released a memo on September 24 that instructs federal agencies to consider additional Reduction in Force (RIF) notices in the event of a government shutdown.
Likely to Continue:
- Payments for Public Housing Operating Funds, Housing Choice Voucher Subsidies, Housing Assistance Payment contracts, and administrative fee payments for October and possibly through mid-November;
- The ability to draw down previously obligated funds for programs like CDBG, HOME, and Public Housing Capital Funds; and
- Processing of deals that are close to closing (including FHA-insured mortgages that have a Firm Commitment and RAD deals that have RCCs issued prior to the shutdown
On Recess: The Senate is on recess for the remainder of this week and the House is out on recess until Tuesday, October 7. Members could be called back earlier if an agreement materializes.
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By the Numbers: Over the last five decades, there have been 21 federal shutdowns. The longest government shutdown, which lasted 35 days, occurred from December 2018 to January 2019 during President Trump’s first term.
