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Shut Down Likely

At midnight tonight, the Continuing Resolution passed in December 2017 will expire. Presently, it does not look like Congress will be able to agree on a short or long term funding solution, and a shutdown is highly likely.

Agencies are circulating memos advising staff how to proceed in the high likelihood there is a shutdown and nonessential federal employees will be furloughed without pay.

OMB has just released a memorandum – Planning for Agency Operations during a Potential Lapse in Appropriations – that includes FAQs regarding grants and contracts (Section II, pages 3-9).

The University of Washington leadership has developed information as to impacts of a shutdown, which will occur in three major areas: research funding, student aid, and Medicare and Medicaid payments. Those impacts can be found here. 

If the federal government does shut down, significant impacts will not be immediately felt by the UW community. Initial impacts will be felt by those in the research community needing to communicate with the federal enterprise such as researchers needing engagement or approval from program managers or researchers applying for grants.  Impacts will be magnified if a shut down is prolonged and goes for multiple weeks.

The University does a plan in place to have adequate cash on hand from existing accounts to cover anticipated expenditures in the event of delayed federal reimbursement. We estimate that we could go at least one month, possibly more, before layoffs or contract suspensions would be initiated.

To follow developments on budget negotiations minute to minute, the Washington Post is counting down the time to midnight.

The Federal Relations team is continuing to monitor the situation and will continue to provide updates.