What’s Up With the Government Shutdown? October 24, 2025

October 24, 2025

Written by Joe O’Sullivan, Director of Public Policy and Advocacy

At midnight on October 1, the start of its new fiscal year, the federal government entered a partial shutdown as the previous fiscal year’s funding expired. As the shutdown lingers on, only essential federal employees remain on duty while most others are furloughed. The economic toll of a prolonged shutdown will be immense, but individuals with intellectual and developmental disabilities (I/DD) face unique risks to the services they depend on every day.  

Why did this happen? What does it mean for social services? What will happen if the shutdown continues beyond November 1? Here’s what you need to know: 

Why Is the Federal Government Shut Down? 

The government shutdown stems from partisan gridlock after Congress failed to pass a Continuing Resolution (CR)—a temporary funding measure that maintains the previous year’s spending levels. Though CRs are meant to prevent shutdowns, they’ve become routine, with over 200 passed since the 1970s. 

In September, a bipartisan CR was passed by the House but stalled in the Senate, leading to the shutdown. While there are many partisan objections to the Republican spending plan, the key disagreement is the extension of the Affordable Care Act (ACA) premium tax credits set to expire at the end of 2025. These tax credits help lower monthly insurance costs for individuals and families.  

With negotiations stalled over this key sticking point, concerns are growing over a prolonged shutdown and its impact on essential services. 

Will the Shutdown Impact the I/DD Community or Other Social Services? 

I/DD services in the United States are largely subsidized by Medicaid. While the current shutdown hasn’t yet disrupted Medicaid payments or related programs, a prolonged shutdown could put these critical services at risk. 

With only essential federal employees working, many administrative functions like processing new applications, renewals, appeals, and approvals will face increasing processing delays as the shutdown continues. Although the Centers for Medicare & Medicaid Services (CMS) is still issuing state Medicaid payments normally, backlogs are growing.  

With the reduced workforce and increased administrative delays, states who partially fund Medicaid services could feel the economic strain. If states lose federal matching dollars, their ability to administer Medicaid services will be severely limited, and state-level service and funding cuts to these programs are likely. Luckily, that has not happened yet, but if the government does not reopen by November 1, there will be major impacts across the economy and key social services.  

What Happens After November 1? 

The economic impact of the shutdown is estimated at a $15 billion loss per week. The shutdown increases uncertainty in the markets and delays federal approval of private sector investment. If allowed to continue, it will result in the loss of key federal benefits for vulnerable populations.  

The Supplemental Nutritional Assistance Program (SNAP), commonly referred to as food stamps, provides financial assistance to over 42 million low-income Americans buying groceries. Approximately 25% of SNAP recipients have a disability, meaning millions of Americans with disabilities rely on SNAP for basic nutrition. If the government shutdown continues past November 1, SNAP funds will be exhausted and SNAP payments will be halted, creating food insecurity for 42 million Americans. Millions of Americans with disabilities will be forced to make extreme choices such as paying rent or buying groceries.  

SNAP payments are just one example of how severe the consequences of a prolonged government shutdown will be. As it persists, more uncertainty is created, the economic cost snowballs, and more Americans lose access to essential government services. The I/DD community is particularly at risk and could face service losses, even longer waitlists, delayed revalidation, health declines, and state-level cuts. 

Calling For Compromise 

To end the shutdown and protect essential services, especially for individuals with I/DD, Congress must return to negotiations and pass a CR. So far, neither side has budged, and the longer the partisan gridlock lasts, the greater the harm to those who rely on government support every day. 

Action is urgently needed to prevent lasting damage to I/DD services and other critical programs. Keep an eye out for our campaign to protect I/DD services in the coming months where you can make your voice heard! 

To stay up to date on Clearbrook’s advocacy efforts, receive action alerts, and more, please sign up to join our network at https://www.clearbrook.org/advocacy/