Published: October 6, 2025
On Oct. 1, the federal government entered a shutdown after Congress failed to agree on spending legislation before the fiscal year deadline. This has forced agencies across the country to scale back operations and furlough workers until Congress reaches a resolution.
A government shutdown occurs when Congress fails to pass an appropriations bill, or when the president does not sign it into law. Due to the Anti-Deficiency Act, federal agencies are prohibited from spending money without prior authorization. Staff are divided into essential and non-essential employees. Essential positions, such as air traffic controllers or border agents, will continue to work without pay until funding resumes. Jobs considered non-essential are furloughed at home. While this disruption has serious implications for workers, the Government Employee Fair Treatment Act of 2019 guarantees retroactive pay once the shutdown ends.
The Congressional Budget Office estimated that during the 38-day-long 2018–19 shutdown, the U.S. economy lost about $11 billion in growth. While mandatorily funded programs like Social Security, Medicare, and Medicaid continue, discretionary programs such as new grants, research projects, and federal regulatory oversight often pause or slow down.
Maine has roughly 12,000 federal employees, many of whom are facing furloughs or will be required to work without pay. Services tied to federal funding, such as operations at Acadia National Park, passport processing, and housing programs, could experience delays.
“Across Maine’s public universities, more than 2,900 faculty, professional staff, and student workers are fully or partially funded through federal sources,” University of Maine System Chancellor Dannel Malloy said in a recent notice regarding the government shutdown.
At the University of Southern Maine, federal student aid is a central concern. Pell Grants and most federal loans are expected to continue being processed. Some administrative functions within the Department of Education are slowed because many employees have been furloughed. Federal work-study programs, which provide employment to students on campus, may face temporary interruptions depending on how long the shutdown lasts.
Most day-to-day operations at the university are expected to continue. Classes remain in session, and student aid will still be disbursed. The larger concern is how long the shutdown will last, and how deep its effects will run if negotiations drag on.
Government shutdowns are not new in the U.S., but each one is unique. Since 1976, there have been 20 gaps in funding and four official government shutdowns. For students at the University of Southern Maine, the most immediate effects will likely be financial aid delays, possible interruptions in work-study jobs, and uncertainty around faculty research projects. For Maine’s broader population, the shutdown could slow services, result in furloughs for workers, and strain local programs that depend on federal funding.
The current shutdown happened because Congress could not agree on funding for the new fiscal year. Lawmakers failed to pass the 12 required spending bills or a temporary fix before the Sept. 30 deadline. The main fight was over whether to extend health care subsidies and Medicaid protections. Democrats wanted those included, while many Republicans wanted a funding bill without them. With no deal in place, funding lapsed, and many federal services were forced to pause.
As Congress continues negotiations, University of Southern Maine students, faculty and staff are encouraged to stay alert for updates from the university administration, which is monitoring developments closely.
What will be impacted by the government shutdown?
Impacted:
- New federal research grants
- Work-study tied to federal funds
- DOE investigations & oversight
- Federally funded research jobs
Not impacted:
- Pell Grants & federal loans
- Loan payments
- State universities & classes
- Essential services (air traffic, law enforcement, postal service, etc.)
Might be impacted:
- Loan forgiveness & repayment plan processing
- Federal aid customer service wait times
- SNAP/WIC
- Immigration/visa services
- Delays in disbursing new grants
