Massachusetts, September 27, 2025
News Summary
Massachusetts state officials are gearing up for a potential federal government shutdown that could begin next week. The shutdown may result in significant disruptions to payroll, federal grants, and essential services statewide. The Office of the Comptroller has issued a memo urging agencies to engage in contingency planning, with a focus on protecting residents and resources amid the uncertainty. Approximately 25,000 federal employees in Massachusetts may be affected, raising concerns about payroll and federal funding, which constitutes a major part of the state’s fiscal budget.
Boston — Massachusetts state officials are preparing for a likely federal government shutdown that could begin next week, with potential impacts on payroll, federal grants, and services across the state.
Top line
Lawmakers in Washington, D.C. are approaching a government shutdown due to a lack of funding agreement. Without a funding agreement, the government would run out of money by next Tuesday. The prospect has prompted a memo from the state Office of the Comptroller and the Executive Office of Administration and Finance asking agencies to start contingency planning immediately.
What the state has instructed agencies
The memo requests fiscal officers, budget directors, and general counsels to engage in contingency planning and to respond by the end of the day next Tuesday. Agencies are instructed to summarize how they would protect Commonwealth residents and resources in the event of a shutdown. Recipients of the memo are advised not to assume additional state funding will be available.
Agencies should outline any state funding needed for Massachusetts to take over responsibility for critical federal programs. Officials managing grants are asked to communicate with the federal government for updates on potential disruptions to grants. Agencies are urged to prepare actions to discontinue spending against grants if their continuation seems unlikely.
Payroll and workforce concerns
Concerns about federal funding availability relating to bi-weekly payroll for employees paid from federal sources are highlighted in the memo. About 25,000 civilian federal employees work in Massachusetts, who would be affected by the shutdown. The Office of Management and Budget is directing federal agencies to prepare for permanent job cuts in case of a shutdown, and the White House is said to be preparing for mass firings of federal employees if a shutdown occurs.
Federal grants and programs at risk
The state’s General Federal Grants Fund is at high risk during a shutdown. Discretionary funding programs are identified as most vulnerable to a shutdown, impacting employees in those areas significantly. Federal funding accounts for approximately $15.6 billion of Massachusetts’ fiscal 2026 budget, primarily supporting MassHealth and Medicaid payments.
Local services and sites that could close
A shutdown would require federal agencies to halt all non-essential discretionary functions until new funding is approved. Non-essential National Park Service employees would likely close sites like the Bunker Hill Monument during a shutdown, and other federally supported services could be limited or paused.
Political context and immediate actions
The Bay State’s all-Democrat delegation is pushing the majority Republicans to find votes to keep the government running. Republicans would need 10 Democratic votes to pass a stopgap spending bill and avoid a shutdown. A government shutdown is deemed likely, with no current negotiations between the Trump administration and congressional Democratic leaders. Reports suggest the Trump administration plans to extract maximum pain from Democrats by blaming them for the shutdown.
What agencies should do now
- Respond to the state memo by the stated deadline and provide a written contingency summary.
- Identify critical services that would need state support if federal funding stops.
- Contact federal grantors for status updates and be prepared to halt spending if continuation appears unlikely.
- Assess payroll risk for staff paid with federal funds and plan communications and operational steps accordingly.
Background
When the federal government lacks an approved funding agreement, non-essential discretionary functions are typically halted until Congress and the White House approve new appropriations. Federal funding is a significant part of Massachusetts’ budget, with major allocations for health programs and grants. The potential shutdown has raised concerns at the state executive level about protecting residents and state resources while avoiding assumptions about additional state financial backstops.
What to watch this week
- Responses from state agencies to the contingency memo by the end of the day next Tuesday.
- Any movement in Congress toward a stopgap spending bill and whether the required votes are attainable.
- Updates from federal grant administrators on continuity of grant-funded programs.
- State announcements about any short-term actions to cover critical services if federal funds lapse.
FAQ
Q: What is the immediate risk for Massachusetts?
A: Lawmakers in Washington, D.C. are approaching a government shutdown due to a lack of funding agreement.
Q: When would the government run out of money?
A: Without a funding agreement, the government would run out of money by next Tuesday.
Q: How much federal funding supports Massachusetts’ budget?
A: Federal funding accounts for approximately $15.6 billion of Massachusetts’ fiscal 2026 budget, primarily supporting MassHealth and Medicaid payments.
Q: How many federal employees work in Massachusetts?
A: About 25,000 civilian federal employees work in Massachusetts, who would be affected by the shutdown.
Q: What has the state asked agencies to do?
A: The memo requests agencies to engage in contingency planning and respond by the end of the day next Tuesday.
Q: Which state fund is most at risk?
A: The state’s General Federal Grants Fund is at high risk during a shutdown.
Q: What is the political situation in Congress?
A: The Bay State’s all-Democrat delegation is pushing the majority Republicans to find votes to keep the government running. Republicans would need 10 Democratic votes to pass a stopgap spending bill and avoid a shutdown.
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Quick reference table
| Topic | Key fact | Immediate action or impact |
|---|---|---|
| Shutdown status | Lawmakers in Washington, D.C. are approaching a government shutdown due to a lack of funding agreement. | State agencies are preparing contingency plans and must respond by the end of the day next Tuesday. |
| Funding deadline | Without a funding agreement, the government would run out of money by next Tuesday. | Federal agencies would halt non-essential discretionary functions until new funding is approved. |
| State budget exposure | Federal funding accounts for approximately $15.6 billion of Massachusetts’ fiscal 2026 budget, primarily supporting MassHealth and Medicaid payments. | Potential shortfalls in federally supported programs that rely on those funds. |
| Federal workforce in MA | About 25,000 civilian federal employees work in Massachusetts, who would be affected by the shutdown. | Payroll concerns for employees paid from federal sources; agencies to assess bi-weekly payroll risks. |
| Grants | The state’s General Federal Grants Fund is at high risk during a shutdown. | Officials managing grants should communicate with federal partners and prepare to discontinue spending if necessary. |
Deeper Dive: News & Info About This Topic
HERE Resources
Federal Shutdown Threat Looms Over Massachusetts
Massachusetts Prepares for Potential Federal Shutdown
Monica Cannon-Grant Pleads Guilty to Nonprofit Fraud Charges
Governor Healey Denounces Trump’s Attacks on Massachusetts Universities
Governor Healey Addresses Federal Cuts Affecting Science
Massachusetts Must Repay $2.1 Billion to Federal Government
Disney Cuts Nearly 200 Jobs at ABC News Amid Restructuring
Massachusetts Delegation Denounces GOP Budget Cuts
Additional Resources
- NBC Boston: Massachusetts Braces for Shutdown
- Wikipedia: Government Shutdown
- MassLive: Gov. Healey on Looming Shutdown
- Google Search: Massachusetts Government Shutdown
- Politico: White House Preparing for Shutdown
- Encyclopedia Britannica: United States Government
- Boston.com: Prep for Payroll Disruptions
- Google News: Federal Government Shutdown
- The Daily Record: Mass Firings Ahead of Shutdown
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