Updated October 1, 2025 at 3 p.m. ET

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Shutdown Facts 

• Because no appropriations bills were enacted, there is a total shutdown. Enactment of only some appropriations bills triggers a partial shutdown in those parts of the government not covered by those bills. 

• The 35-day partial shutdown in 2018–2019 cost the economy an estimated $11 billion, including $3 billion in permanently lost gross domestic product, according to the Congressional Budget Office. 

• Unlike military and federal civilian personnel, there is no law that guarantees shutdown-related backpay for contractor employees after appropriations are restored. 

• For each day of shutdown (including weekends), it takes 3-5 days to re-start the engines of government and recover from that lost time. 
   

Shutdown / Continuing Resolution History 

• Since 1976 (FY77), every fiscal year has started with at least one continuing appropriation act (also known as "continuing resolutions” or “CRs”) except in 1989, 1995, and 1997. 

• In recent years, Congress has passed 2-5 CRs each year before enacting full-year bills. FY25 saw a full-year CR after several short-term funding measures. 

• Notable shutdowns: 

• Dec 22, 2018-Jan 25, 2019 (35 days)

• Oct 1-17, 2013 (16 days)

• Dec 16, 1995-Jan 6, 1996 (21 days) 

• Shutdowns in the late 1970s and 1980s lasted 1-17 days

• During shutdowns in 2013 and 2018-2019, tens of thousands of contractors were furloughed.
  
  

Contractor Preparation for Shutdown 

• Analyze current situations. 

• Plan for multiple possible events and lengths of shutdown. 

• Communicate with contracting officers – and maintain communications throughout shutdown.

• Know employee impacts from HR policies (including leave), labor laws, travel, and facility access. 

• Determine your cash flow requirements and how you will meet them. 

• Plan to seek recoveries promptly – and watch for required notices and timeliness rules. 

Contractor Actions During Shutdown 

• OMB and Agency guidance documents apply – updates are rarely publicly available far in advance; PSC checks for updates regularly as deadlines near. 

• Contracting officers have broad discretion to determine which contract actions continue – and those determinations can change over time. 

• Contract decisions for the most part are NOT centrally directed. 

• Work on contracts can be funded by prior appropriations that do not lapse. 

• Funded work continues unless contracting officers direct otherwise OR some external event interferes with contract execution. 

• Contractors may compensate furloughed workers, but such compensation is rarely reimbursed by the government once a shutdown ends. 
  
  

Contractor Preparations for After Shutdown Ends 

• Continue to meet contract deliverables.  

• Keep invoicing for prior work.  

• Be prepared for immediate resumption of stopped work. 

• Prepare claims for stop work order impacts (know the relevant timetables).  

• Be prepared for immediate restoration of access to facilities (on very short notice). 

• Expect solicitation due dates, new awards, even schedules for deliverables to be affected (3-5 days to recover for every day shut down, including weekends). 
  
  

Shutdown Effects – Federal Government 

• Uniformed personnel (e.g., military) continue to work, without pay. 

• Government civilian personnel fall into two categories. 

• “Excepted” (also known as “essential”) personnel continue to work, without pay.

• Non-essential personnel do not work, also without pay. 

• The President decides on, and can change, which functions are excepted as a shutdown progresses. 

• As noted earlier, a 2019 law guarantees back pay for all federal government personnel after appropriations are restored, whether they worked or not.

• Contractors follow different procedures – and have never received back pay. 
  
  

Shutdown Effects – Contractors 

• Contracts with prior funding in place continue, unless: 

• They require actions by a government employee who is not available, or they require access to government facilities that are not available. 

• A contracting officer issues a stop work order or termination. 

• They reach the end of their funding or their period of performance. 

• Contracts that depend on new funding from FY26 appropriations cannot work. 

• As always, contractors take direction only from designated contracting officers.