Government shutdown: What does it mean for architects?

With no funding agreement and stalled proposals, Congress risks a government shutdown on October 1 as time for negotiation dwindles.
Congress has not reached an agreement to fund the federal government for the new fiscal year, and a shutdown is likely to begin on October 1 unless legislators pass spending bills or a temporary extension before the deadline.
Competing proposals in the House and Senate have failed to advance, and neither chamber is scheduled to return to session until September 29, leaving minimal time for negotiation. Since 1977, there have been 20 government shutdowns that lasted at least one day, with the longest lasting 34 days in 2018–2019. Most shutdowns have lasted between 1 and 3 days.
A government shutdown would result in:
- Delayed or suspended paychecks for federal workers and contractors—non-essential workers are not permitted to work during government shutdowns.
- National parks, museums, and many public services could close or reduce hours.
- Delays in federally backed loans, passports, and other essential services.
- Social Security checks would still go out, but agency staff furloughs could slow new applications or customer service.
A notable change is recently released White House guidance indicating agencies should prepare for permanent layoffs rather than temporary furloughs if the shutdown occurs. In past shutdowns, non-essential federal workers have received backpay after furloughs, but an administration memo released on September 24 states mass reductions may occur, retaining only the minimal staff required to operate. This is a significant departure from previous shutdown management practices. A shutdown will additionally impact architects, especially those working on public projects or relying on federal funding in program areas prioritized by AIA, including resiliency, affordable housing, and the environment.
For example:
- Checks distributed by the federal government for affordable housing project could be delayed.
- Disaster response and community recovery funds administered by FEMA could be delayed.
- Rental assistance programs (Section 8, Tenant-Based Rental Assistance) may experience payment disruptions.
- Housing agencies that rely on federal funds for operations and maintenance may be paused leaving public housing at risk and planned property improvements on hold.
- Uncertainty makes landlords less likely to accept federal vouchers, putting further pressure on low-income families and newly built affordable housing units.
- EPA is likely to suspend permitting, monitoring, and enforcement activity, halting cleanups, environmental impact reviews, and work on pollution mitigation.
- New infrastructure projects for clean water, stormwater, and hazardous waste remediation can be stalled, impacting the design, construction, and long-term operation of sustainable and resilient facilities.