The Federal Government Shut Down – Impacts on Indian Country

10/02/2025

Washington, D.C. – The Federal government officially shut down on Wednesday, October 1, after Congress failed to reach a critical funding deal.  With funding for many federal agencies now lapsed, about 750,000 workers are furloughed.  The President has also warned that a prolonged shutdown could result in permanent layoffs.

The impact of the shutdown varies significantly across agencies, depending on existing funding and approved contingency plans.  Senate Committee on Indian Affairs, Vice Chairman Senator Schatz provided an advisory briefing paper summarizing impacts to Indian Affairs across many agencies.  His paper also includes links to a number of agency contingency plans.  The advisory briefing paper is available here.

More detailed information for each of the primary Indian Affairs agencies can be found below.  These summaries come from the information provided by each agency.

U.S. Department of the Interior

Bureau of Indian Affairs

The following services and programs are authorized to continue because they are either necessary to protect human life and property or they support existing activities funded by non-lapsed or continuing funds, as required by law.  This authorization encompasses all necessary resources, including facilities, personnel, and communications infrastructure, that are needed to sustain these essential operations.

NAME OF SERVICE/PROGRAM	REASON
Law Enforcement and Detention Centers	Protection of life and property. Carryover funding will be used if available.
Social Services Child and Adult Protection	Protection of life by disbursing financial assistance to individuals in need and to vendors providing foster care and residential care for children and adults. Carryover funding will be used if available.
Irrigation, Power and Safety of Dams	Non-appropriated funding sources available for Irrigation and Power. Funding from fee collection. Safety of Dams is an excepted function for the protection of life and property. It is partially funded with non-lapsing funds until exhausted and then carryover if available.
Transportation Program	Non-lapse funding sources available. Funding from Department of Transportation Highway Trust Fund.  Tribal Priority Allocations in Road maintenance activities including: emergency, bridge, snow/ice removal, etc.
Wildland Fire Management	Protection of life and property. Wildland Fire Program is funded with non-lapsing funds and carryover if available.
Tribal Government Operations	Disbursement of Tribal funds that are not subject to lapse for Tribal operations.
Emergency Energy Production	Oil and gas related activities necessary for the protection of life and property.
Budget Formulation	Budget preparation and planning for FY 2027

Bureau of Indian Education

Since all schools will remain fully funded and operational, exempt administrative personnel will continue to work.  These staff members will provide essential services related to the schools' operation, including critical safety and health programs.

The following personnel will be on site to ensure the protection of employees and students and to respond to any incident involving loss of life or property:

• Security Guards

• Safety Specialists

• Behavioral Health Specialists

• Facility and Maintenance Staff
  

Bureau of Trust Funds Administration

The following activities will stop due to a lapse in appropriations: 

• Non-Trust Beneficiary Call Center staff will not be available to respond to public inquiries or correspondence, including mail. 

• Litigation support services for Tribal trust cases will be suspended unless court orders require continued action, in which case designated on-call staff will comply. 

• Outreach and educational events will be cancelled. 

• No Freedom of Information Act (FOIA) requests will be processed.

Assistant Secretary – Indian Affairs

If a function is not considered essential, which means it's not needed for life or property safety, it will be suspended.  The only exception is if there is sufficient carryover funding to maintain operations.

Solicitors Office

The Office of the Law Enforcement Staff Attorney, Division of Indian Affairs will provide legal advice and counsel to the Bureau of Indian Affairs, Office of Justice Services, as necessary to ensure the safety of Indian communities and to protect human life and property.

U.S. Department of Health and Human Services

Indian Health Service

One hundred percent (100%) of Indian Health Service (IHS) staff will be exempt and paid from advance, multi-year, or supplemental appropriations, third party collections, or carryover balances.  However, not all IHS programs are covered.  These areas will not be funded until new legislation is passed: 

• Facilities construction

• Electronic health records

• Sanitation facilities construction

• Indian Health Care Improvement Act fund

• Contract support costs 

• 105(l) leases

Funding for the Special Diabetes Program for Indians has expired but will be using leftover balances until it runs out. 

Centers for Medicare & Medicaid Services (CMS)

Medicare and Medicaid are expected to continue.  There are no expected changes to Medicare.  Medicaid open enrollment periods will continue unchanged.  Roughly half of CMS staff could be furloughed.

Temporary Assistance for Needy Families (TANF) and the Low Income Home Energy Assistance Program (LIHEAP)

The TANF and LIHEAP programs may pause benefits.

U.S. Department of Agriculture

The Supplemental Nutrition Assistance Program (SNAP), the Child Nutrition (CN) programs and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) shall continue operations during the shutdown subject to the availability of funding.  The Food Distribution on Indian Reservations Program (FDPIR) will only continue operations if discretionary carryover funds are available. 

Department of Housing and Urban Development  

During a government shutdown, funding for the Native American Housing Assistance and Self-Determination Act (NAHASDA) and Tribal HUD-VASH will be temporarily paused. The Office of Native American Programs Office of Loan Guarantee (OLG) will close.  This closure means no new firm commitments or loan guarantees will be issued for the Indian Housing Loan Guarantee (Section 184), Native Hawaiian Housing Loan Guarantee (184A), or Title VI Loan Guarantee Programs, and no existing claims will be paid.  While Tribally-Designated Housing Entities (TDHEs) are generally not required to cease operations, their ability to sustain normal services may be limited over time.

Skenandore Wilson LLP is dedicated to the representation of Tribal Nations, Tribal entities, and individual Tribal members throughout Indian Country.  Our mission is to support and advance the sovereignty, self-sufficiency, and self-governance of our Tribal clients.  To learn more about how we can assist you, contact us at info@skenandorewilson.com or 608-608-1210.