What cities need to know about the federal government shutdown

By Caroline Grinder, legislative advocate (federal liaison)

The federal government shut down today after Congress failed to reach an agreement to fund the government before the Sept. 30 deadline. This is the first time that the government has shut down since 2019.

Shutdowns often have ripple effects that strain city budgets, delaying federal funding and disrupting vital services.

"A federal shutdown has real impacts on communities, putting at risk the delivery of services that residents rely upon and increasing economic uncertainty," said Cal Cities Executive Director and CEO Carolyn Coleman. "We strongly urge Congress to find consensus and end the shutdown - for the good of California and the nation."

Federal government shutdowns occur when spending bills stall in Congress. In a shutdown, federal agencies must discontinue all non-essential discretionary functions until funding legislation is signed into law. While essential services and mandatory spending programs continue to function, these shutdowns can adversely affect local governments of all sizes.

Essential programs - such as Social Security, Medicare, veterans' benefits, the military, law enforcement, immigration enforcement, customs and border patrol, and air traffic control - will continue operating. However, service members and air traffic controllers are among those now working without pay.

Additionally, the Office of Management and Budget instructed federal agencies last week to prepare reduction-in-force plans in preparation for a shutdown, targeting non-essential government functions.

Many other federal services and programs will be disrupted. For example, national parks are expected to close, federal grant reimbursements and applications may be delayed, and federal staff who provide oversight or technical assistance could be unavailable.

What can my city do?

Depending on the duration of the shutdown, the effects can multiply quickly. However, local leaders can take steps to prepare their communities and reassure residents. The National League of Cities has created a checklist to help local leaders navigate a shutdown. Cal Cities will monitor the situation closely and provide updates and resources as more information becomes available.