The Long Tail of Reopening the Government

Right now, all eyes are on how Congress will move past this stalemate and reopen the government. The next challenge will be reopening. Reopening the government, especially after a long shutdown, is not as easy as flipping on a switch. It’s a slow, uneven process that shows the gaps in payments staffing, and agency priorities, which rolls onto states, businesses, and nonprofits that partner closely with the federal government.

Here are a few areas to watch when the government reopens:

Federal workforce whiplash. Even before the shutdown, agencies were dealing with reduced staffing models. The threat (or actuality) of up to 10,000 terminated employees will further complicate how agencies function when employees come back to a very different ecosystem. They will not only have a backlog of responsibilities to work through, but also changing workloads and responsibilities if the RIFs move forward.

Payment bottleneck. Many of the financial accounting or program leads dealing with payments are currently furloughed. Nonprofits, research institutions, and local governments waiting on reimbursements or active draws from federal grants could face liquidity challenges as they wait for payments that could take weeks or months after the government reopens. For many organizations, this could mean delayed projects, furloughed staff, and postponed community impacts.

Statutory deadlines in question. Deadlines tied to statute don’t stop during a shutdown. This creates a compliance and timing crunch as agencies scramble to make up for lost time. This wave of delayed action will push deliverables deep into the next quarter, shifting timelines for regulatory reforms, FACA meetings, and grant announcements. Congress will need to decide if they hold agencies accountable for missed deadlines, as these delays could push well into next year.

It will be important to be patient once the government reopens, but also to press agency leadership to prioritize critical programs. While we wait for Congress to negotiate a solution to reopen the government, it will be helpful to start planning for how to work with agency partners to help them ramp back up.