WASHINGTON – At 12:01 a.m. EDT on Oct. 1, the federal government officially entered a shutdown after Congress failed to pass its annual funding bill.
Both a Republican-backed stopgap proposal and a Democratic-backed spending package fell short in the Senate, leaving the government currently without a budget to operate.
Shutdown in context
This marks the first federal shutdown since 2019 during then-President Trump’s first term in the Oval Office. This shutdown, taking place from Dec. 22, 2018, until Jan. 25, 2019, is currently the longest recorded government shutdown in U.S. History, lasting 34 days and resulting in roughly 800,000 federal employees furloughed.
Current estimates by the Congressional Budget Office project that roughly 750,000 workers will be out of work during this closure, rivaling Trump’s last major congressional standstill. And while the political blame game is unfolding in Washington, the consequences will ripple far beyond the Capitol. From research funding to student financial aid, universities across the country—including Utah Valley University—could feel the impact.
Research and grants on hold
Many federal agencies fund university research, including the National Institutes of Health (NIH) and the National Science Foundation (NSF). According to Reuters, the NIH plans to furlough about 75 percent of its workforce, significantly slowing medical and scientific research.
Due to such a large drop in staffing, those agencies stop reviewing and awarding new grants during a shutdown.
This unpaid leave of absence for federal workers may result in college faculty struggling to maintain projects, and graduate students or research assistants who rely on federal budgets could face delayed funding.
Financial aid and student loans
The Department of Education has said existing Pell Grants and federal student loans will continue during the shutdown, as Pell Grants and federal loans are funded through “mandatory spending or carryover appropriations, and therefore don’t require approval from Congress”.
This, in conjunction with most awards being drafted during the summer, means that student aid will be affected very minimally, if at all. However, processes like FAFSA verification, customer support, and loan servicing may slow down, since most staff outside of student aid will be furloughed.
According to AP News, roughly 87% of the Department of Education’s staff will be furloughed. Inside Higher Ed adds that while FAFSA remains open and disbursements will continue, contact with the department may be limited, and CBS News confirms that loan payments remain due.
Work-study programs
Federal work-study programs have been providing thousands of students nationwide with part-time campus jobs for nearly a century since their inception in 1964. This program, typically refunded by the federal government, is likely to be impacted by a prolonged shutdown.
The Department of Education released a contingency plan September 28, indicating work-study operations should continue in the short term. However, the American Council on Education (ACE) notes that prolonged shutdowns could affect administrative services including federal work-study programs.
Students currently in work-study positions are unlikely to see immediate impacts, but uncertainty exists for schools and how long they will be able to fund these jobs without federal reimbursement.
International students in limbo
International students could face delays in visa processing and work authorization during the shutdown. While U.S. Citizenship and Immigration Services operate on fee revenue and continue processing applications, State Department consular services – which handle visa renewals and appointments – will run only until existing funds are exhausted, according to the American Council on Education (ACE).
Students waiting on visa renewals or applying for post-graduation work permits like Operational Practical Training could see extended processing times if the shutdown continues.
The Blame Game: How this all happened
As stated previously, the Senate failed to come to a resolution on a budget bill to extend government funding. This is due to the fact that currently Republicans hold 53 seats in the Senate due to recent vacancies and are seven seats short of the 60 votes needed to pass the CR funding bill that they proposed.
This has forced them to work with Democratic Senate members, who are using this opportunity to bargain.
Ensuing talks have centered on reversing Medicaid cuts and preserving health insurance subsidies for low-income individuals. Republicans have pushed back on this, resulting in a stalemate.
Both parties are blaming the other for the shutdown, with Democrats saying the Republican majority in the senate is the root cause of the shutdown, while the White House has officially taken the stance that “Democrats have shut down the government”. This comes from their official webpage, where a stopwatch counter is currently running to track the current length of the shutdown.
What’s next for students
Lawmakers remain locked in a standoff, with Democrats still accusing Republicans of targeting healthcare programs and Republicans still pushing for deeper cuts to federal spending. Until a deal is reached, federal workers, universities, and students alike will continue to wait.
For most students, the immediate impact may be less visible than for federal employees, but it is still real. Research funding delays, interruptions to federal financial aid processing, and limits to on campus programs that depend on government support can ripple into student life ever so-slightly.
Students are not without options. Staying informed, participating in campus discussions, and reaching out to elected officials are ways to make their voices heard. And with elections looming on the horizon, students hold influence through the power of their vote.
For now one thing is clear: what happens in Washington certainly does not stay in Washington. Even here in Utah County, the effects of a government shutdown can reach into campus communities, research labs, and students’ wallets.
