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              Congressional
            aResearch Service






Federal Grants to State and Local

Governments: Issues Raised by the Partial

Government Shutdown



Updated January 15, 2019

At the end of the day on December 21, 2018, the continuing appropriations measure, Making Further
Continuing Appropriations for Fiscal Year 2019 (P.L. 115-298), which encompasses 7 of the 12 regular
annual appropriations acts, expired. The resulting lapse in appropriations resulted in the partial shutdown
of unfunded agencies beginning on December 22, 2018. Federal agencies that received their FY2019
appropriations under the Energy and Water, Legislative Branch, and Military Construction and Veterans
Affairs Appropriations Act, 2019 (P.L. 115-244), and the Department of Defense and Labor, Health and
Human  Services, and Education Appropriations Act, 2019 (P.L. 115-245) are not directly affected by the
shutdown.
During the lapse in appropriations, the Office of Management and Budget has directed federal agencies to
implement contingency plans designed to guide operations during the partial government shutdown.
Federal agency operations include administration of over 1,700 congressionally authorized federal grant
programs, some of which are administered by agencies currently experiencing a lapse in appropriations.
On average, the federal government provides nearly $600 billion annually in outlays to state and local
governments through federal grants. A lapse in federal funding for grants to state and local governments
raises several potential issues. A federal government shutdown may cause disruption to, or may result in
the cessation of, grant administration activities depending on the following factors:
    *  the timing and duration of the federal government shutdown; and
    *  the choices made by federal, state, and local officials in anticipation of, or during, a
       shutdown regarding grant program administration.








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