Economy

Federal gov’t shutdown threatens state grant programs, benefits

Federal agencies have yet to release detailed contingency plans explaining what programs and activities would be affected.
The Capitol and Washington Monument on the National Makk are seen in the distance in Washington, Tuesday, Sept. 23, 2025. (AP Photo/J. Scott Applewhite)

A federal government shutdown next week could disrupt grant programs states rely on and benefits states administer, such as food stamps and cash assistance. 

If Congress cannot pass a budget by Sept. 30, the White House wants federal agencies to immediately halt funding for some programs and lay off workers who run them, according to a Wednesday memo from the Office of Management and Budget.

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