A partial government shutdown began Saturday after Congress failed to reach a deal on legislation to fund the Department of Homeland Security through September. A DHS shutdown would have immediate and growing consequences for local governments, often before residents experience visible disruptions. While some federal operations may continue, the systems cities rely on to manage emergencies, recover from disasters and protect critical infrastructure may begin to slow or stall.
When a shutdown continues, temporary workarounds become less effective, administrative backlogs grow and delays in federal reimbursements and support become more pronounced — all of which compounds uncertainty for local governments. The crucial difference this time around is that DHS funding is the only agency affected, and there is increasing concern that a DHS shutdown could last for weeks or longer due to unresolved disagreements in Congress.
Local Issue Areas
Disaster recovery and preparedness would be among the most affected areas. Delays in FEMA reimbursements and grant processing would force local governments to cover response and recovery costs for longer periods, straining budgets and cash flow, particularly in smaller communities with limited reserves. Federal resources that cities rely on, such as training and preparedness activities for emergency managers, firefighters and law enforcement, could also be suspended, which hurts the federal-local partnership and weakens municipal readiness over time.
Immigration enforcement looks slightly different. Though federal enforcement activities are likely to continue, they will suffer reduced coordination, limited administrative support and potential delays in information sharing. This means local governments and their law enforcement agencies could face increased operational demands related to federal enforcement actions, including impacts on policing, emergency response and community relations, without additional federal funding or reimbursement.
Additionally, local governments may experience reduced federal cybersecurity support and slower coordination on critical infrastructure protection, increasing pressure on local IT and public safety teams.
Airports could face increased strain, consistent with impacts seen during previous federal shutdowns. Transportation Security Administration officers are typically required to work without pay during shutdowns, which in past shutdowns contributed to higher absenteeism, staffing shortages and longer security screening lines at airports.
Overall, a DHS shutdown would shift more operational, financial and coordination responsibility onto local governments. Cities, towns and villages would be left managing greater uncertainty and risk at the local level as federal support systems remain limited.
Local Official Checklist: Navigating a Federal Government Shutdown
A federal shutdown can have economic impacts on your community and municipal operations. Explore NLC’s Local Official Checklist on Navigating a Federal Government Shutdown for resources, updates, contact information and more.
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