Partial Government Shutdown Takes Effect
The House and Senate were unable to resolve their differences over the FY2026 appropriations process and sent the federal government into a partial shutdown on Oct. 1.
The House passed a GOP-led funding extension Sept. 19 primarily along party lines. It was a “clean” continuing resolution (CR) because it extended current spending levels without adding unrelated policy changes. The bill kept government funded at current levels through Nov. 21. This is the first shutdown in more than six years. The last shutdown during Trump’s first term lasted 35 days and was the longest in history.
A funding stoppage will stop construction activity on certain jobsites immediately, with federally funded projects the first to be affected. A shutdown could keep contracting officers and support staff away from their jobs unable to offer approval for project phases. Fixed-price contracts with appropriated federal resources probably can continue paid work, but state and local construction tied to federal resources could face obstacles.
Most highway programs will operate without interruption because they receive funding from the Highway Trust Fund and the NUCA-supported 2021 Infrastructure Investment and Jobs Act rather than annual federal appropriations. State revolving funds (SRF) can continue lending with existing grants and loan repayments, but new federal grants and some approvals may be paused. EPA may stop issuing permits, conducting enforcement inspections, and approving new grants.
NUCA is urging both Congress, President Trump, and the leadership in both parties to find a compromise that will keep the nation’s infrastructure projects moving forward over the weeks and months ahead. We build our nation’s foundation for future economic growth and national success, and depend on federal resources to deliver these projects to all American communities.
