Federal Government Enters into Partial Shutdown

Congress was unable to reach a deal to fund the federal government for Fiscal Year 2026, which began on October 1, triggering a partial shutdown of the federal government. For decades, Congress has failed to finalize all its spending bills before the September 30 deadline. The typical remedy is a short-term funding patch, known as a “continuing resolution” (CR), which extends current funding levels for weeks or months to provide extra time to strike a deal. However, this September, the Senate was unable to garner the necessary 60 votes to advance a CR passed by the House of Representatives, which would fund the government through late November and extend many programs that were set to expire. 

Senate Democrats, who blocked the measure, offered an alternative CR that would extend health care subsidies, which will expire at the end of the year. That, too, failed to get the necessary 60 votes to advance. The shutdown impacts approximately 30 percent of federal funding. Not impacted are “entitlement” funds, including Social Security, Medicare, and Medicaid. As both parties blame the other for the shutdown, agencies operationalized their contingency plans. 

The U.S. Department of Education (ED) furloughed 95 percent of its staff outside the Student Federal Aid office and paused the development and implementation of guidance, technical assistance, regulatory actions, grantmaking, and civil rights investigations. Funds that flow through ED, including those for the Individuals with Disabilities Education Act, are expected to continue being disbursed; however, staff will not be available to troubleshoot any challenges that may arise. 

To view ED’s full shutdown plan, go here.