Potential Government Shutdown Approaches
Congress is fast approaching its midnight deadline to pass a continuing resolution to extend current government funding levels past today. Although Congress reached a bipartisan agreement to extend government funding through mid-March earlier in the week, House Republican leadership faced backlash from Republicans of all stripes, claiming that Speaker Mike Johnson conceded too much to Democrats in the talks. Last night, House Republicans put forward a revised Continuing Resolution (CR) that would fund the government through March and would have suspended the debt ceiling, as requested by President-elect Trump. 38 Republican lawmakers joined Democrats to reject the revised CR. House Republicans are working on a new proposal to forge a path forward as the clock fast approaches the deadline. Although things may change, the federal government is currently preparing for a shutdown. If there is a shutdown, it is unclear if it will last past the weekend.
HUD developed a contingency plan for a lapse in funding in September 2023. The Department will use this a guide if a shutdown occurs tonight.
Funding Impacts
NAHRO has learned from HUD that funds for the Public Housing Operating Fund have been obligated through March 2025, and that the Department can make payments for the Housing Choice Voucher program for January and February. This means agencies will be able to continue to access that funding even if there were a government shutdown.
For the Public Housing Capital Fund, funds that have already been obligated and in the system and which can be drawn down without further action or review by HUD employees, should be available. New capital funds (i.e., funds for FY 2025) will not be available until a budget is passed.
HUD will continue to make previously obligated funds available for draw down by CPD grantees (CDBG, HOME, HOPWA, Homeless Assistance Grants, and other grant funds). If there is no action or review needed by HUD employees for funds to be drawn down from the system, then grantees will be able to draw funds normally.
NAHRO will closely monitor the situation and keep members updated.