FAQs about a possible federal government shutdown

Update: This FAQ was posted in preparation for a potential federal government shutdown on Oct. 1; Congress reached an agreement to fund activities through Nov. 17, avoiding a shutdown through that date until an annual budget can be approved. This FAQ provides general guidance for potential impacts of a shutdown on CSU, and will be updated as needed.  

 

Colorado State University receives federal funds for research, land grant programs and student financial aid. When Congress cannot reach an agreement on a federal budget, some federal offices are required to temporarily shut down services and programs until funding for their work is reinstated.

A short-term pause on federal funding is manageable. A shutdown that spans several weeks may create expanding impacts. Please use the FAQs below as a reference; the information will be updated as needed.

CSU is working to minimize impacts should a partial or full shutdown occur and remain unresolved. This preemptive work is informed by the university’s management strategies during previous shutdowns.

These FAQs address how a shutdown may impact researchers, staff and students.

What is a full or partial federal shutdown?

A federal government shutdown can occur when Congress cannot agree on a budget by the end of the federal government fiscal year, which is Sept. 30. The budget depends upon Congress passing 12 appropriations bills that fund government operations. If those bills are not passed on time, federal offices will shut down.

If Congress passes some but not all of the 12 bills, only federal agencies without a budget appropriation in a passed bill will shut down.

Potential CSU impacts

Generally, the impact of a shutdown on day-to-day operations will be minimal. Most university activities will proceed as normal and will not be affected by a shutdown.

A shutdown of the federal government could include the U.S. Department of Education and scientific and research agencies such as the National Institutes of Health. If these agencies are shut down or partly shut down, CSU could feel impacts in some limited aspects of our operations. This biggest impact would likely be within our federally funded research activities, where grant funding and grant proposal approvals could slow or cease until the shutdown resolves.

Although the U.S. Department of Education may be among the departments shut down, it is not as likely that student financial aid will be impacted. This is because they have remained fully online and functional in past shutdowns.

How could students on financial aid be impacted?

CSU’s Office of Financial Aid is closely tracking the situation and assessing any potential impacts. Based on past shutdowns, we expect minimal impacts to federal financial aid, though that really depends on the details and duration of this shutdown, should it occur.

Based on past experiences, CSU expects that:

  • Students will continue to be able to complete the current year Free Application for Federal Student Aid – called FAFSA – for 2023-24.
  • Title IV financial aid funds will continue to be paid to universities.
  • Student loans in repayment will continue to be collected.
  • CSU’s financial aid staff will continue to have access to federal databases and systems needed to answer questions and provide guidance to students.
  • A government shutdown could delay student access to next year’s FAFSA for 2024-25 and impact university-level processing timelines.

How could students using veteran education benefits be impacted?

CSU’s Office of the Registrar’s Veterans Education Benefits team is participating in meetings sponsored by both Veterans Affairs and leading professional organizations in preparation for a potential shutdown.

Based on those conversations with Veterans Affairs, the Veterans Education Benefits team anticipates the following impacts, if a shutdown were to occur. Impacts are also dependent upon the duration of any possible shutdown:

  • CSU would continue submitting certifications, on behalf of students, to Veterans Affairs.
  • Veterans claims examiners will continue processing claims. As a result, GI Bill students should still get paid as usual, and tuition and fees payments for Post 9/11 GI Bill benefits should also still be paid as usual.
  • Monthly stipends have been processed for this month, so there should not be a delay for now. If a shutdown were to continue for some time, future monthly stipends may be impacted.

We have received different guidance regarding active-duty military using tuition assistance.

  • We have been notified that students using tuition assistance, and whose classes start after Oct. 1, would have their tuition assistance cancelled.
  • CSU is working on strategies to limit the impact to the small number of students who are already enrolled and have had tuition assistance approved for Fall 2023 classes starting after Oct. 1.

How would employees be impacted?

The Office of the Vice President for Research is closely following developments around the potential government shutdown.

While specific impacts are not known, based on past shutdowns, generally the following can be expected:

  • Researchers with active, funded grants with obligated funds are generally able to continue project work during the shutdown.
  • Researchers with active, funded contracts with obligated funds are generally able to continue project work during the shutdown unless the PI or CSU receives a formal stop-work order for that.
  • Researchers with active, funded cooperative agreements are generally able to continue project work during the shutdown unless the project requires action from federal employees who are affected by the shutdown or are formally directed to discontinue work.
  • CSU expects to be able to continue to draw down payments (reimbursements) normally on most existing awards.

Possible impacts

  • Active awards with obligated funds that are expiring are the highest risk for impact on personnel paid from these funds.
  • Only in extremely limited circumstances, such as emergencies, will new funds be awarded; generally, no new funds and no incremental funding is available.
  • Contracts based on milestones may have to renegotiate timelines once the government reopens.
  • Affected agencies may not have agency personnel available to assist with prior approvals, support or administrative actions. Changes to grant activities requiring prior approval may need to be delayed.
  • Affected agencies may suspend the acceptance of new grant proposals and the issuance of new awards.
  • Regardless of whether funding for work is available, principal investigators s are required to provide technical reports on time during the shutdown.
  • Scientists on a peer review panel may need to cancel travel plans without reimbursement; please check with the individual agency funding the proposals. Information is usually available on each agency’s website following a shutdown.

Will university employees whose work has federal funding be impacted?

  • Most university employees would not be affected by a shutdown.
  • Some employees work on federal grants, contracts and work-study and may be affected if the shutdown were to eventually require furloughs and the lockdown of federal buildings.
  • Even in such a scenario, potential impacts could vary based on the employee’s duties and location, as well as the type of federal funding tied to their job and decisions by individual federal agencies. Impacts could also change depending on the length of the shutdown.

My work is partly funded through federal grants or contracts. Would I stop working?

  • Employees who are partially or fully funded through federal grants or contracts or who otherwise work on or with federal agencies or facilities should assume that their work will not be interrupted.
  • Notifications changing your work status or schedule should come from a CSU supervisor. Employees receiving direct communication from a federal agency or facility about impacts to their work should forward that notice to Sponsored Programs and their applicable research associate dean for further guidance.

Looking for additional information?

  • For more information about how a shutdown may impact programs such as food stamps, SNAP, airport wait times, Head Start, and other federal programs and resources, please visit the websites of the agencies that provide those resources.