FAQ for the government shutdown

The federal government’s fiscal year runs from Oct 1 through September 30. On October 1, the 2026 fiscal year (FY26) began, however Congress had not approved any spending bills to provide FY26 funding. So, as there was no funding for the federal government past September 30 at 11:59 pm, the government shut down.

Some federal programs are not funded through the yearly appropriations process. This includes programs such as Medicare and Social Security benefits which are “mandatory programs” and affected by the appropriations process. While these benefits will continue during the shutdown, there may be fewer people to administer them because the staffing at these agencies is paid for through yearly appropriations.

Other programs, including many at the Food and Drug Administration are funded through user fees, and some, like the Veteran’s Administration, can use advanced appropriations for funding, so their operations continue.

Programs that are funded through the annual appropriations process may continue to operate on a limited basis. Programs or projects deemed “essential,” such as those focused on security, safety, human health, or other projects deemed “mission critical,” will continue to operate. However, the federal employees that run these programs will not be paid until the federal government is funded.

No one knows how long the shutdown will last. Leaders from both parties and from both chambers are negotiating the next step forward. It is highly likely that at some point Congress will pass a short term “continuing resolution” (CR). A CR is an agreement to continue funding the government for a period of time at the same level as the previous fiscal year’s level. Normally this is done to provide legislators with more time to finalize negotiations.

The longest shutdown in U.S. history was in at the end of 2018 through the start of 2019 and lasted for 35 days. The government has shut down a total of ten times, all since 1976, with only three of them being longer a week.

CMS has stated that the Medicare program will continue to operate during the shutdown. This includes administering the Medicare benefit, the Centers for Medicare and Medicaid Innovation, as well as activities around fraud and abuse. Medicare claims will continue to be paid, but Medicare will not be providing oversight of the Medicare Administrative Contractors (MACs) who pay these claims. Other activities that will be paused during the lapse include rule development (i.e., updating the Medicare Physician Fee Schedule and rules governing Home Health Agencies) as well as outreach and education activities.

CMS has stated that Medicaid has enough funding to last through the first 3 months of the fiscal year. They will also continue to make payments to states for the Children’s Health Insurance Program (CHIP) and continue Affordable Care Act marketplace activities.

You can learn more about CMS activities during the shutdown on the CMS website.

Telehealth services provided to Medicare beneficiaries will not be reimbursed by Medicare until Congress renews the telehealth waivers that allow these services. While telehealth is not directly impacted by yearly funding, the pandemic-era telehealth waivers expired on the same day as funding for the federal government, and telehealth is caught up in the debate of funding. We have provided more information about Medicare telehealth services.

Many agencies at HHS, such as the National Institutes of Health, the Administration on Community Living, and the Health Resources Administration administer grant funding for both programs and research. Programs and research that have been deemed, “necessary for the protection of human life,” such as NIH research and some programs at the CDC will continue. Roughly 41% of the employees at HHS will be furloughed, and many programs will be on pause. HHS has provided an extensive contingency staffing plan, that includes details of each agency within the department, links to those separate contingency plans.

The majority of school-based OTPs should not feel any impact from the shutdown. The federal government’s share of public education funding is only 8%, and the Department of Education (ED) has already stated that Title I of ESSA (low income student support) and IDEA Part B funds, which are the two largest single sources of federal education funding, will be provided to states as usual. This is due to ED providing education funding for the next year (known as forward funding).

However, there are OTP working in schools either on federal lands or fully funded by the federal government, such as on military bases. Practitioners in these settings might face some disruptions, but it will depend on the specific circumstances of the school.

Pell grants and federal student loans will be unaffected by the shutdown. Loan distributions will still occur, and monthly payments are still required.

This depends on the specific grant and the schedule they are on. Some grants follow the federal government’s fiscal calendar (Oct 1-Sept 30) and others follow the calendar year. Congress provides some grants with all the funds needed for the length of the grant while others use each fiscal year appropriations to fund all new and ongoing awards. As a general rule, the shutdown shouldn’t impact grant awardees, as even programs who have funding held will receive it as soon as the FY26 federal budget is funded.

View the Department of Education’s Contingency Plan.

During a shutdown, TRICARE providers can expect minimal disruptions to their operations. TRICARE is funded through mandatory spending and long-term contracts, so services and payments generally continue as usual.

• Claims and Reimbursements Continue: TRICARE contractors, like Humana Military and TriWest, continue to operate and process claims during a shutdown. Providers should not see delays in reimbursement.
• Patient Access to Care Remains Uninterrupted: TRICARE beneficiaries can still access outpatient, inpatient, and pharmacy services. OT providers should continue seeing TRICARE clients as usual.
• Military Treatment Facilities (MTFs) May Scale Back: While MTFs stay open for urgent and emergency care, elective procedures and some routine services may be postponed due to civilian staff furloughs.
• Provider Support Systems Stay Operational: TRICARE’s provider portals and support services remain active. You can continue submitting claims and accessing assistance.

You can find more information on Tricare’s website and this article in the Military Times.

VA-employed and contracted occupational therapy practitioners should expect normal clinical operations during a shutdown.

• Clinical Services Continue: VA Medical Centers, Outpatient Clinica, and Vet Centers remain open and continue providing care. Providers should expect to maintain normal operations and patient access.
• Support Programs Stay Active: Programs like suicide prevention, homelessness services, and caregiver support continue uninterrupted. Providers involved in these areas can expect ongoing support.
• Administrative and Outreach Functions May Pause: Non-clinical services such as transition assistance and public outreach may be temporarily suspended. This should not affect direct patient care. Benefits offices will be closed.
• The Majority of Staff Will Continue to Work: The VA estimates that 97% of its workforce continues working during a shutdown, ensuring continuity of care.
• Medical Staff Should Continue to be Paid: The majority of staff providing medical care should continue to be paid as this care is provided through advanced appropriations and would not be affected by the lapse in appropriations.

You can find more information through the VA website and this article in the Military Times.

Providers can reassure their clients that SSDI and Supplemental Security Income (SSI) benefits will continue as scheduled during a government shutdown. These programs are funded through mandatory spending, so monthly payments are not affected.

• Administrative Services May Be Delayed: While benefit payments remain stable, some administrative services provided by the Social Security Administration (SSA) may be temporarily suspended.
• The majority of staff will continue to work: The SSA expects to retain about 90% of its workforce during a shutdown, ensuring that core functions like benefit payments continue. However, with around 6,200 employees furloughed, non-critical operations may be slower than usual.

You can find more information about the impact on social security at the Social Security Administration’s website.