ATSSA assesses government shutdown’s impact on roadway safety

With Congress unable to pass the government spending bill needed to fund the federal government beyond the Sept. 30 midnight deadline, we have entered a government shutdown. Federal government shutdowns can create real uncertainty and have economic consequences.

A shutdown means there is a lapse in appropriations and requires federal agencies to end all non-essential duties that are paid for using federal funds until there is either a Continuing Resolution providing additional funding for a shorter period of time or upon passage and enactment of a spending bill.

Essential functions funded with discretionary funds will continue (i.e., certain medical services, federal law enforcement, air traffic control and border protection) but many of the federal employees providing these essential services will be doing so without pay until a funding resolution is reached.

What does a shutdown mean for ATSSA members and the U.S. Department of Transportation?

The effect of the federal government shutdown varies by agency within the U.S. Department of Transportation (USDOT).

Because the vast majority of federal highway, transit and highway safety programs are funded using mandatory spending from the Highway Trust Fund and not through the use of discretionary funds, these programs will not be affected during a federal government shutdown. This means Federal Highway Administration (FHWA) activities, programs and staffing will continue to operate and reimbursements for project costs should not be impacted. In addition, Infrastructure Investment and Jobs Act (IIJA) programs funded through advance appropriations are also unaffected. However, in the event of a long-term shutdown, some of these programs and offices could begin to close and could run out of funds at a future date.

The Office of Management and Budget requires all federal agencies to provide a contingency plan to cover any lapse in appropriations. USDOT has posted its shutdown plan, which can be found here. As you will see, currently no employee at FHWA has been furloughed, as those positions are funded through non-annual appropriations funding.

ATSSA will continue to track the developments of the shutdown and will provide updates as the situation changes.

Published Date

October 1, 2025

Post Type

  • News

Topic

  • ATSSA News
  • Funding
  • Government Relations

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