The Government Shutdown

At 12:01 this morning, the federal government shut down. After weeks of brinkmanship, lawmakers in both parties were unable to bridge their differences in time to keep agencies open. While shutdowns have become an almost familiar feature of Washington in recent years, this one carries the same old uncertainties—for federal workers, for the programs they administer and for the millions of Americans who rely on them.

The crux of the current impasse lies in a dispute over health insurance tax credits. Democrats have pressed for an extension of expiring credits as part of any stopgap measure to fund the government. Republicans, backed by the President, have so far resisted. Despite this standoff, party leaders continue to consult with one another, and talks are ongoing even as agencies scale back operations.

Layered on top of this policy disagreement is a deeper issue of trust. Many Democrats remain wary that even if they support a short-term funding deal now, Republicans will later move to rescind portions of approved funding. That fear is not hypothetical: in March, after Democrats helped pass a continuing resolution, Republicans swiftly advanced legislation to claw back spending authority. This history has left Democrats reluctant to rely on assurances that any agreement reached today will be honored tomorrow.

What happens next? Once lawmakers find a way through this deadlock, it is widely expected that Congress will pass a continuing resolution. Such a measure would reopen agencies and extend funding for only a short duration, likely a few weeks. The point of that temporary patch would be to give negotiators more time to hammer out a full-year funding bill for fiscal year 2026. Until that happens, uncertainty will remain, and the NEA—like every other agency—will be left to plan in increments, rather than with the stability that a year-long appropriation provides.

The federal government won’t be able to resume regular operations until the House, Senate and White House can strike a budget deal. It’s difficult to predict the trajectory of those negotiations. NASAA will keep advocates apprised of new developments once we know how the appropriation for the National Endowment for the Arts is faring in the process.