Anatomy of a Federal Shutdown: FY 2026 Edition

Published: September 22, 2025

Federal Market AnalysisBudgetPolicy and Legislation

The federal government finds itself in a familiar place - on the precipice of another shutdown.

A proposed continuing resolution (CR) to fund the federal government until November 21, 2025 has been opposed by the Senate, setting the stage for a government shutdown when the current CR expires at 11:59pm on September 30, 2025. 

The path forward is unclear, so contractors should be prepared with an understanding of the mechanics of a shutdown as well as steps they should take to navigate the contracting space until a full budget is passed. 

 

Note: The report has been updated to reflect the passage of legislation (the "Government Employee Fair treatment Act of 2019), which guarantees back pay for federal employees furloughed during a government shutdown.