On October 1, 2025, the United States federal government entered a shutdown after congressional lawmakers failed to pass a resolution to continue funding the government. The shutdown will likely cause several disruptions for private employers, including late payments on contracts, disruptions to regulatory processes, and delays in projects. Here are some insights into federal agencies’ shutdown contingency plans.

• A federal government shutdown began on October 1, 2025, after the U.S. Congress did not reach an agreement to continue to fund federal agencies.
• Federal agencies have issued contingency plans to furlough staff while keeping some essential functions operating.
• While it is unclear how long the shutdown will last, private employers are likely to face disruptions regarding federal contracts, federal investigations or other processes, and federal projects.

Congressional lawmakers had until 11:59 p.m. (EDT) on September 30, 2025, to pass a funding resolution before appropriations for the federal government expired. Hours before the deadline, the White House Office of Management and Budget (OMB) issued a memorandum directing agencies to prepare for a federal government shutdown starting on October 1, 2025.

“[A]ffected agencies should now execute their plans for an orderly shutdown,” OMB Director Russell Vought said in a memorandum. Federal employees were ordered to “report to work for their next regularly scheduled tour of duty to undertake orderly shutdown...

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