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Friday, March 13, 2026

Reminders for a Potential Government Shutdown this Weekend - Crowell & Moring LLP

Congress has not passed funding bills to keep key parts of the government funded for the remainder of Fiscal Year 2026—including the Departments of Defense, State, Treasury, Labor, Health and Human Services, Transportation, Housing and Urban Development, and Homeland Security, as well as independent agencies, the judiciary, and national security and foreign operations functions. As Congress continues to negotiate a deal in advance of the expiration of funds on January 30, parts of the government may still face a short shutdown, given the time needed for both the Senate and the House to consider and approve legislation. In anticipation of that possibility, agencies whose funding is uncertain are preparing for a shutdown; contractors, grant recipients, and companies that work with those agencies should do the same. Our team is ready and available to advise through the shutdown process.

I. What Is a Government Shutdown?

The federal government may only spend or promise to spend in the amounts, for the purpose, and subject to the conditions Congress sets out in its annual appropriations bills. A government shutdown occurs when Congress fails to pass appropriations. Simply put, without an appropriations law passed by Congress and signed by the President, the government generally has to stop spending money, meaning it must shut down operations, close offices, and send employees home. There are exceptions: even in a shutdown, the government can continue activities (1) involving...



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