CSWE Advocacy Update - September 30, 2025

Government Shutdown Outlook and Impacts for Education and Healthcare

As of September 30, no agreement has been made between Republicans and Democrats on a Continuing Resolution (CR) to keep the government funded for a short period. On Monday, President Trump hosted congressional leadership from both the House and Senate to strike a deal between both parties, but no agreement was made, increasing the likelihood of a government shutdown. Please see below to see the impacts of a government shutdown on education and healthcare.
 

Education

Federal student aid for the 2025–2026 school year will remain unaffected, as funding levels were set under the full-year CR passed for fiscal year (FY) 2025. Looking ahead, funding for the 2026– 2027 school year will depend on the outcome of the FY 2026 appropriations process. At this time, a government shutdown is not expected to disrupt the disbursement of 2025–2026 federal aid, as disruptions would likely only occur in the event of a prolonged shutdown. However, the Reduction in Force (RIF) actions at the U.S. Department of Education have significantly reduced staff capacity and it will be important to track the effects of those actions on the Office of Federal Student Aid.

 

Healthcare

The impact on healthcare programs is expected to be limited if the shutdown is held for days or weeks. Under previous shutdowns, the White House exempted federal workers from furlough that are considered essential for protecting human life or property, which typically include health programs, such as the medical care of patients and drug approvals. In addition, benefits payments covered by mandatory spending, such as Medicare and Medicaid, are typically not impacted. However, there would be delays in discretionary grant funding for community health centers, and disbursement of funds for the National Health Service Corps and the Teaching Health Center Graduate Medical Education Program. Funding for these activities would likely be restored once the shutdown ends, as proposed in the Republican and Democrat CR proposals. CSWE will continue to monitor the progress of these negotiations and impacts on education and healthcare.