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When the federal government faces a shutdown, businesses, nonprofits, and community organizations that rely on federal grant funding can feel an immediate impact. Payments may be delayed, federal staff may be furloughed, and communication with program contacts can come to a standstill. Yet your projects still need to move forward.
At Morrison we specialize in grant administration, and we know how stressful these periods can be. The good news: with careful planning and proactive management, you can keep your grant-funded projects on track until government operations resume.

1. Review Your Funding Agreements

Start by revisiting your grant contract or grant agreement. Many programs include guidance on allowable costs, payment terms, and contingencies for interruptions. Understanding these provisions will help you make informed decisions about spending and cash flow during a shutdown.

2. Maintain Clear Internal Documentation

Even if you can’t communicate with your program officer, you should continue documenting every expense, staff activity, and deliverable tied to your grant. This ensures compliance when reporting resumes—and reduces the risk of disallowed costs.

3. Adjust Your Cash Flow Strategy

A temporary halt in reimbursements or drawdowns can strain operations. Review your cash reserves and consider whether a short-term line of credit, delayed purchases, or staggered hiring might be necessary. Forecasting tools (like the ones we develop for our clients) can provide a clear picture of what’s sustainable in the short term.

4. Keep Projects Moving Where Possible

While some activities may need to pause, focus on the work that doesn’t rely on federal oversight or payments. Completing tasks that can be handled internally will prevent bottlenecks once communication channels reopen.

5. Communicate with Partners and Stakeholders

Your collaborators, subcontractors, and community stakeholders need reassurance. Be transparent about the situation and set realistic expectations. Showing that you have a plan builds trust and credibility.

6. Plan for Reporting Catch-Up

Once the government reopens, deadlines may shift rapidly. Anticipate a surge in reporting requirements, site visits, or compliance requests. Having your records current and well-organized will give you a head start.

Final Thoughts

A government shutdown doesn’t have to derail your grant-funded initiatives. With the right systems in place—clear documentation, smart cash flow management, and steady communication—you can weather the uncertainty and keep your mission moving forward.
At Morrison, we help organizations like yours prepare for and navigate funding disruptions. If you’d like support in developing contingency plans or strengthening your grant administration processes, we’re here to help.