Shutdown in Washington: What a Federal Government Shutdown Really Means

Congress failed to reach a budget agreement by October 1, the start of the federal fiscal year for 2026 (FY 2026) and the nation is currently facing its 15^th shutdown. The ripple effects of the shutdown are sure to have both direct and indirect impacts on the recycled materials industry.

Shutdowns have a variety of impacts, the severity of which can depend on the shutdown's length and what appropriations bills and continuing resolutions (CRs) have been passed. As the majority of the federal government is funded by 12 annual appropriations bills, if appropriations bills have not been enacted before the start of the federal fiscal year or a temporary funding measure-known as a continuing resolution (CR)-has not been enacted, a gap (or lapse) in appropriations will occur. As of this writing, none of the FY 2026 appropriations bills have been enacted, and there is no agreement on a short-term CR.

As of now, the shutdown is not causing major disruption. However, if the shutdown extends beyond one or two weeks, impacts could become significant for the recycled materials industry and the broader economy. Potential impacts include:

• Reduction in staff and associated activities at the U.S. Environmental Protection Agency. U.S. EPA's contingency plan has stated that once remaining funding runs out, nearly 90 percent of staff is set for furlough. Among operations the agency will halt if funding runs out are new permit issuances, most enforcement inspections, nearly all scientific publications, and approval of state air and water cleanup plans. Superfund activities will continue as it as has alternative funding streams, though work at certain sites may be paused if not an imminent threat to human life.
• Occupational Safety and Health Administration inspection activity in non-state plan statesopens in a new tabmay be delayed. While the agency will continue to monitor and respond to emergencies and imminent danger situations, previously planned or random inspections will likely be rare. Department of Labor's contingency plan is here.
• Staffing reductions at U.S. Customs and Border Protection (CBP) are expected to result in slower processing times and potential days at ports of entry.
• Additional furloughs across federal agencies for functions not deemed "essential" under the Administration's priorities could further disrupt government services and operations.

There will be ripple effects felt throughout the country and the longer a shutdown lasts, the more disruptive these impacts become. While President Donald Trump has signaled desire to keep the government open, he has also said that ""if it has to shut down, it'll have to shut down." The longest shutdown lasted 35 daysopens in a new tab, during the first Trump administration from December 2018 - January 2019.

Legislative Outlook

While the House has already passed a seven-week extension of current government spending, the path forward is not clear in the Senate. The upper chamber requires sixty votes to pass the funding package, and despite holding three votes in two weeks to advance the measure, it has continued to fail. The most recent measure on Wednesday, 10/1 failed 55-45, with three members of the Democratic caucus voting to advance the resolution while Senator Rand Paul (R-KY) remained opposed.

The Senate is expected to remain in D.C. through the weekend in an attempt to pass the bill. Many Democrats oppose the plan and want any spending agreement to include health care provisions, including an extension of the Affordable Care Act tax credits and a reversal of Medicaid cuts. If an agreement cannot be reached, it is unclear with the Shutdown will end.

Agency Planning & Continuity

The Office of Management and Budget (OMB) directed federal agencies to submit plans identifying who is essential and what functions will continue during a funding lapse. Unlike in previous shutdowns, OMB has also instructed agencies to consider extensive employee layoffs in unfunded programs that are not priorities of the Administration if a shutdown occurs.

Some activities continue during a shutdown due to forward funding, mandatory funding, or Antideficiency Act exceptions for the protection of life and property. These include Social Security, Medicare, veterans' benefits, military operations, law enforcement, U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP) and air traffic control.

If you're interested in learning more - the Congressional Research Service also has online resources to assist interested parties in understanding the implications and history of government shutdowns:

• Government Shutdowns and Executive Branch Operations: Frequently Asked Questions (FAQ)opens in a new tab (Updated Sept. 2, 2025)
• Past Government Shutdowns: Key Resourcesopens in a new tab (updated Sept. 22, 2023)
• Federal Funding Gaps: A Brief Overviewopens in a new tab (published Sept. 7, 2023)

OMB's webpageopens in a new tabthat normally publishes shutdown contingency plans is empty. For now, OMB indicates that consistent with Circular A-11opens in a new tab, agency contingency plans for a lapse in appropriations will be hosted solely on each agency's website.

ReMA will continue to monitor the status of the government shutdown and will keep members informed of new information related to contingency plans, or realized impacts. If you have questions, please reach out to Kristen Hildreth, VP of Government Relations & Public Policy at [email protected] in a new tab