As of October 8, 2025 

Delaware nonprofit leaders, we see you. You’re keeping programs running, checking on staff, and reassuring clients, all while facing real uncertainty. Please know DANA is here to help.  If you need anything, please reach out—no one should navigate this alone. 

The federal government shutdown continues, with no clear resolution in sight. Below is a concise status update, implications for Delaware’s nonprofit sector and funders, and practical steps we can take together. 

Current Status 

• The U.S. Senate is considering measures to reopen the government; prior attempts have failed.

• Senate Democrats have withheld votes in pursuit of an extension of Affordable Care Act premium tax credits set to expire at year’s end. 

• Bipartisan talks continue behind the scenes to identify a compromise. 

• Each federal agency has posted a shutdown contingency plan outlining operations during the lapse in funding.  

Key Impacts to Date 

• Federal Workforce: ~750,000 federal employees furloughed nationwide.
  • The president has threatened to not provide back pay to furloughed federal workers, but a 2019 law requires that workers be automatically paid back after a shutdown.

• Funding Suspensions: The Administration has halted more than $28 billion in previously awarded federal funds, including infrastructure and climate-related investments. 

• Critical Services: 
  • USDA Farm Service Agency offices closed (impacts farm loans and agricultural assistance). 
  • WIC benefits for low-income mothers and children under five at risk if the shutdown continues. 
  • SBA small business loans paused. 
  • Essential personnel (e.g., air traffic controllers) working without pay. 
  • Public-facing institutions (federal museums, libraries) are temporarily closed. 

Delaware Context 

Thousands of Delawareans, either employed by the federal government or relying on federally funded programs will feel the strain. Prolonged shutdowns can disrupt service continuity for human service organizations and delay reimbursements on federal grants and contracts. creating cash-flow stress and operational uncertainty for nonprofits across our state. 

What This Means for Nonprofits & Philanthropy 

Nonprofits delivering federally funded services, especially in food assistance, early childhood, workforce development, and housing—may face cash-flow interruptions and program delays. Philanthropic partners may see an uptick in emergency requests from organizations experiencing stalled federal payments. The shutdown also delays policy processes and data activities that inform both public and private investment strategies in Delaware. 

Action Items 

1. Share Stories of Impact: If your nonprofit organizations is affected by the shutdown (grant delays, service disruptions, staffing challenges), please share your story by email [email protected]. These stories are vital to inform real-time advocacy and resource coordination. 

2. Contact Delaware’s Congressional Delegation: Our federal delegation has published resources to help constituents navigate the shutdown and welcomes input from nonprofit leaders and funders. 

• Sen. Lisa Blunt Rochester: 2025 Government Shutdown Information  
• Rep. Sarah McBride: Shutdown FAQ 

DANA is coordinating closely with national partners and state leaders to track impacts on Delaware’s nonprofit ecosystem. If conditions persist, we are prepared to convene briefings or listening sessions to keep philanthropic and nonprofit leaders aligned in response. 

We will continue to provide updates as more information becomes available.