Shutdown Fears Rise as End of FY 2025 Fast Approaches, NAHRO Updates State One-Pagers 

September 25, 2025 — Congress appears to be bracing for a government shutdown after lawmakers failed to pass a funding agreement for FY 26 last week. There were two Continuing Resolution (CR) proposals to keep the government open on the floor and both failed to reach the 60 Votes needed to pass. Congress is currently in recess, though Senate Majority Leader Thune plans to bring the House Republican’s CR Bill back to the floor on September 29, after it failed to pass last week. The House is scheduled to remain in recess past the September 30 deadline to fund the government. 

NAHRO will continue to inform Congress of the importance of maintaining the federal commitment to housing and community development by returning to the proper order of passing appropriations bills and continuing resolutions to avoid needless government shutdowns. NAHRO has also updated its state- and territory-level data flyers to reflect funding proposals in the House and Senate bills. NAHRO encourages members to use this data with any outreach out you may have with your elected officials and their staff. 

NAHRO has learned that HUD is preparing for a government shutdown, however all indications show that PHAs should be largely unaffected, at least initially. Funds for the Public Housing Operating Fund have been obligated through November 2025, and HAP and Admin Fee payments have been loaded for October and two weeks of November. October shortfalls are scheduled in the system, and HUD is working on getting November shortfalls added as well. HUD developed a contingency plan for a lapse in funding in September 2023, though this may be updated as we get closer to a potential shutdown.  

Reports are also circulating that the White House is preparing for mass firings during a possible shutdown. These reductions in force would go beyond typical furloughs that occurred in past shutdowns. As always, NAHRO will be monitoring the situation closely and providing timely up-to date information as it becomes available.