Congress failed to enact FY2026 funding legislation before the new fiscal year began on October 1st, 2025, forcing most federal agencies to cease “non-essential” operations until an agreement is reached. 

This page provides the latest information about the federal government shutdown and potential impacts to programs serving children, youth, and families experiencing homelessness. We will update it as new information becomes available. 

Please note: the longer the shutdown lasts, the greater the likelihood of disruptions.

Who determines what happens during a government shutdown?

During a shutdown, the White House and political appointees at federal agencies have significant discretion in determining staffing levels, funding disbursements, and other agency actions. Most agencies post contingency plans on their websites. 

• The U.S. Department of Education (ED) has released its plan. 
• The U.S. Department of Health and Human Services has released its plan.
• The U.S. Department of Housing and Urban Development has released its plan.

What are the implications for early childhood programs?

• The majority of Head Start and Early Head Start programs have received funding for the current program year, and should be able to draw down funds. According to the National Head Start Association, only six Head Start programs were expecting funds on October 1st, and are drawing on emergency local resources to stay open.
  • If the government is still shut down on November 1st, another 134 programs across 41 states and Puerto Rico, serving 58,627 children, will face the same cliff.
• Under the Child Care Development and Block Grant program, states should have sufficient funds to maintain current enrollments (states have two years to obligate discretionary funds, and receive more than $3 billion each year in mandatory funding that does not depend on annual appropriations).
• Preschool Development Grant Activities funded with already-obligated awards can proceed; however, new awards, no-cost extensions, budget revisions, and federal approvals are likely delayed.
• IDEA Part C (Early Intervention) & Part B-619 (Preschool Special Ed) (ED) formula funds were already awarded to states in July and should not face disruption.
• MIECHV Home Visiting (HRSA/HHS) have mandatory appropriations through FY2027; awardees generally continue operations during a shutdown, though federal support/TA may be limited. 

What are the implications for K-12 education programs?

• The funding at issue in the shutdown – FY2026 – is for the 2026-2027 school year (i.e. next school year). 
• Most K12 funding for the current school year (FY2025) – including funding for the Education for Homeless Children and Youth program – was provided earlier this year because most federal education programs are “forward funded.” This means that funding for the current school year is provided in the previous year’s appropriations bill.
• ED’s contingency plan affirms this fact, and states that grantees will continue to be able to draw down funds from FY2025 awards that were previously made. 
• Some federal K12 programs receive “advance funding” on October 1st. This is FY2026 funding that is provided in the FY2025 funding law. These programs include Title I, Title II, and IDEA. ED’s contingency plan states that Title I and IDEA funding will go out as usual. As part of litigation related to the federal K12 education funds that were withheld in July, the Administration agreed in writing that funds that were expected to go out on October 1st would go out “without new conditions or restrictions” no later than October 3. 
• Schools that receive funding from the Impact Aid program (schools in areas with tax-exempt federal land that receive government aid, and schools on military bases, tribal land and near national parks) will not receive these funds during the shutdown because Impact Aid is provided to schools on a monthly basis.
• Some discretionary education programs may continue to face disruption due to the Trump Administration’s withholding or delaying of FY2025 funds. This disruption is unrelated to the government shutdown, but rather caused by the Administration’s attempt to defund programs that do not align with its priorities.
• ED’s plan calls for immediately furloughing more than 2,000 agency employees—nearly 95 percent of the overall staff. Therefore, data collection, monitoring, and responding to inquiries will be suspended.
  • In the midst of the shutdown, the Trump Administration fired thousands of federal employees including nearly 500 at ED in the Office of Elementary and Secondary Education, the Office of Special Education and Rehabilitative Services, and the Office of Postsecondary Education. This includes the staff that administer the EHCY program, Title I, Title II, Title III, Migrant Education, and other programs within OESE (see chart here). For more information on the impact of the firings on the education of homeless children and youth and children in foster care, see this post.

What are the implications for higher education programs?

• Federal student aid (i.e. Pell Grants and student loans) will continue to flow and student loan payments will still be due. 
• The recently launched FAFSA is expected to remain open and fully-functional. 
• ED’s contingency plan states that customer service activities, including contractor support for the Federal Student Aid Information Center (FSAIC), will remain operational in the near-term. However, a prolonged shutdown could impact services. For more information on how to support homeless students completing the FAFSA, check out SHC’s FAFSA resources.
• No new grants will be awarded, which could impact programs like the Basic Needs Grant or Postsecondary Student Success Grant.
• The American Council on Education has more information on higher education impacts here.

What are the implications for housing and homeless assistance (including Runaway and Homeless Youth Act programs)?

• Some Runaway and Homeless Youth Act grantees have received their new grant notifications, but may face delays in accessing funds during a government shutdown. The National Network for Youth has more information here.
• Individuals receiving rental assistance should have access to funds, at least for the month of October. 
• HUD will cease reviewing and issuing new grant awards as well as pausing more technical assistance operations. 
• Individuals receiving rental assistance should have access to funds, at least for the month of October.
• The National Housing Law Project has a “Know Your Rights” resource for people living in HUD-supported housing during a shutdown.

What are the implications for food assistance programs?

• WIC serves low-income pregnant women, women who are breastfeeding, postpartum women, infants, and children up to the age of 5.  Benefits could continue where states have contingency funds, but new federal obligations and some support functions may pause in an extended shutdown period. The program will not have enough funding left to accept new applicants starting Oct. 1, and the National WIC Association estimates that the program only has one week of funding available in reserves to pay states. CBPP is calling for immediate action to protect WIC.
  • The Trump Administration has provided one-time emergency funding to keep WIC operational through the end of October, but the program will need additional funding to sustain its operations after Nov. 1 if the government is still shut down. 
• SNAP will continue to be disbursed to recipients for several weeks, but a more prolonged shutdown could interrupt benefits. FRAC has more information on the impact of the shutdown on FRAC and WIC.
  • The U.S. Department of Agriculture has issued a letter to States directing them to delay processing November benefits. States have responded in various ways, including warning recipients that benefits will be curtailed or halted if the government remains shut down in November.