The Possible Government Shutdown: What Grant Applicants Need to Know

  • September 28, 2023

A potential government shutdown could impact grant award decisions from the federal government in a number of ways.

  • Grant applications may not be processed on time. During a shutdown, many federal agencies will operate with a reduced staff or may even close altogether. This means that grant applications may not be processed as quickly as they normally would.
  • Some grant programs may be suspended. During a shutdown, some federal agencies may suspend certain grant programs or may be unable to award new grants. This is because they may not have the staff or funding to manage these programs.
  • Grant awards may be delayed. Even if a grant award is made during a shutdown, the actual disbursement of funds may be delayed until the government reopens. This is because the Office of Management and Budget (OMB), which is responsible for releasing grant funds, may be furloughed or closed.

In addition to these direct impacts, a government shutdown could also have indirect impacts on grant award decisions. For example, if a shutdown disrupts the economy or leads to uncertainty about future funding, it could make it more difficult for grant recipients to raise matching funds or other resources needed to support their projects.

Overall, a government shutdown could have a significant impact on grant award decisions from the federal government. If you are applying for a federal grant, it is important to be aware of the potential impacts of a shutdown and to plan accordingly.

Here are some tips for grant applicants in the event of a government shutdown:

  • Submit your application as early as possible. This will give the agency more time to process your application before the shutdown takes effect.
  • Be prepared for delays. It is possible that your application may not be processed or that your award may be delayed, even if you submit your application early.
  • Have a backup plan. In case of a shutdown, it is important to have a backup plan for how you will fund your project. This may involve raising matching funds from other sources or finding other ways to support your work.
  • Stay informed. Monitor the news and the websites of the agencies that offer grants to stay up-to-date on the latest developments related to the shutdown.

I hope this information is helpful. Please let me know if you have any other questions.

We work with high-growth startups and organizations that support the startup and innovation ecosystem. We build highly specific non-dilutive funding menus, provide proposal preparation services, and measure outcomes of funding through evaluation. Schedule a consult call with us HERE.