The federal government of the United States shut down at 12:01 a.m. on October 1, 2025, as partisan budget priorities clashed in Congress.
As the shutdown stretches into weeks, many of the 2 million federal workers deemed nonessential have been furloughed; 23,500 federal workers in Kentucky immediately became impacted by the shutdown. Historically, most shutdowns have lasted days, with the longest shutdown in U.S. history lasting 35 days, from Dec. 22, 2018, to January 25, 2019.
Impact on the state and Kentucky cities
The effects of a federal government shutdown on states and cities depend on how long it lasts, and how much a state or city relies on federal money and services. During a shutdown, federal funding may be delayed or reduced. Federal approvals and permitting may also be delayed, making it harder for states and cities to provide essential services, and slow or stall federally funded projects.
Here’s what we know and what we are continuing to monitor as the shutdown continues:
Transportation
The U.S. Department of Transportation (USDOT) website reports: “Portions of the Department of Transportation are currently in shutdown/furlough status due to a lapse in appropriations. Please continue to monitor this page for updates on DOT’s operating status.” The League will monitor updates and make them available to members.
Health care
The Kentucky Cabinet for Health and Family Services Department for Medicaid Services, which administers Medicaid in Kentucky, will continue operating during the shutdown as it is an essential service. The federal Supplemental Nutrition Assistance Program (SNAP) has contingency funds for about 30 days, while the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) has a shorter reserve funding period.
Military
The Pentagon received an order this week to ensure active-duty military personnel are paid during the government shutdown. The funds should ensure those active-duty personnel at Fort Knox and Fort Campbell continue to receive pay; however, many on base include civilian employees and family members.
Housing and economic development
U.S. Department of Agriculture programs related to rural development and farm services may be disrupted as nonessential personnel are furloughed. While a short-term shutdown may not significantly affect the Department of Housing and Urban Development (HUD), a prolonged closure could impact affordable housing developers who have HUD loans or are awaiting federal approvals. Specific economic data used to make these decisions will not be updated during the federal shutdown.
Emergency management
Most Federal Emergency Management Agency (FEMA) staff are considered essential employees and will continue to respond to emergencies and disasters. However, depletion of the Disaster Relief Fund and FEMA implementation of immediate-needs funding could delay reimbursements to states and local governments. Additionally, the National Flood Insurance Program, administered by FEMA, may lapse if a prolonged shutdown occurs.
Tourism
Federally funded national parks, like Mammoth Cave, remain open during the federal government shutdown. However, some services may be limited or unavailable. For more information, please visit: doi.gov/shutdown
Additional information
View comments and updates from our federal partners:
View federal agency contingency plans that may be relevant to cities: