Department of Homeland Security Shutdown Fact Sheet
Updated April 28, 2026
The Department of Homeland Security (DHS) has been without funding since February 14, 2026 — making it the longest partial government shutdown in U.S. history. Unlike a full government shutdown, this lapse affects only DHS, but its consequences for the U.S. economy, the homeland, and the American public – including federal contractors and small businesses – are severe and compounding by the day.
The Congressional Budget Office has previously found that shutdowns produce lasting economic damage: an estimated $7–$14 billion in economic activity is permanently lost for every six weeks of a shutdown. DHS has been without funding for over nine weeks.
Congressional action on FY2026 appropriations for DHS is essential to maintaining stability for the agency and the federal contractors who support mission critical programs.
What's at Stake: Critical Missions at Risk
At a moment of heightened global geopolitical tensions, DHS cybersecurity operations are running at degraded capacity. Staffing gaps and continuity disruptions leave federal networks and critical infrastructure at greater risk of exposure.
The contractors who support TSA checkpoint operations are not receiving payment from the federal government — yet those companies are continuing to pay their own employees out of pocket. This is an unsustainable business model that risks losing a critical workforce.
The U.S. is in the midst of peak tornado season and hurricane season begins June 1. FEMA should be ramping up preparedness and response capacity but are operating in a funding vacuum, compounding the risk to communities when severe weather strikes. FEMA contractors provide on-the-ground personnel surge support during a disaster response and essentials including blankets and cots, medical supplies, and meals.
Contractor-Specific Impacts
Contractors are performing vital work for DHS with substantially delayed payment for invoiced work. This means:
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- Invoice payment delays range from 30-90 days, with some instances reported of invoices unpaid from last summer.
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- Businesses are individually accessing millions of dollars in lines of credit to maintain payroll for employees currently performing work on mission critical DHS contracts. This has resulted in significant interest charges, more than late fees provided under the Prompt Payment Act.
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- Small businesses — many operating on thin margins — are continuing to perform and meet payroll while federal payments are delayed. This is not a position most firms can sustain for much longer.
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- For every day of shutdown, it takes 3–5 days to restart government operations and recover lost time — meaning the downstream costs extend well beyond the shutdown itself.