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Federal Shutdown Ends: What the New Budget Deal Means for Nonprofits and Communities 


After 43 days, the federal government shutdown has officially come to an end. Congress passed a bipartisan Continuing Resolution (CR) to reopen the government, and President Trump signed it into law on Wednesday, November 12. This action immediately restarts normal federal operations and restores access to critical programs that millions of people rely on. 

Below is a clear explanation of what’s included in the new agreement, how long it lasts, and what it means for nonprofits and for people who depend on federal benefits. 

What’s in the New Budget Deal? 
The shutdown officially ended when Congress passed a Continuing Resolution (CR). A CR is a temporary funding plan that keeps the government running while lawmakers continue to work on a full-year budget. With this agreement in place, all federal agencies can reopen and begin operating normally again. 

H.R. 5371 will keep the government funded through January 30. This gives Congress a limited amount of time to negotiate and pass the remaining annual spending bills. If they cannot reach a final agreement by that date, the country could face another shutdown. 

While the CR is temporary, it does fully fund several major parts of the government for the entire year. These include the U.S. Department of Agriculture, the Food and Drug Administration, the Department of Veterans Affairs, military construction projects, and the operations of Congress. Other major agencies – such as Defense, Labor, Health and Human Services, Education, Transportation, Housing and Urban Development, Commerce, Justice, and Interior – still need long-term budget deals. 

As part of the negotiations to pass the CR, Senate Democrats secured a few important commitments, such as a guarantee that the Senate will hold a vote in mid-December on extending enhanced health insurance subsidies under the Affordable Care Act. These subsidies help keep coverage affordable for millions of people. It is important to note the commitment was only to hold a vote but did not ensure passage of the measure. The legislation also pays all back pay to federal employees and reinstates employees who were let go during the shutdown. 

SNAP Benefits: What Happens Now That the Shutdown is Over? 
Throughout the shutdown, millions of Americans faced delays or cuts in their SNAP food assistance. Court orders challenged the administration’s refusal to fully fund benefits, and states were forced to choose whether to issue partial benefits, full benefits using state funds, or none at all. Governor Matt Meyer declared a State of Emergency and Delaware provided its own funds to issue food assistance to households. The funds were deposited to EBT accounts on a week-by-week basis in November, with the intent to continue until federal SNAP food benefits resume. 

Now that the government has reopened: 

  • USDA will resume issuing full SNAP benefits to eligible households. 
  • The legislative package replenishes the SNAP contingency fund, allowing full November benefits. 
  • However, the bill does not guarantee full benefits if another shutdown occurs in the future. 

Like Delaware, many states opted to fill the gap with full or partial benefits depending on court rulings and federal guidance. 

What This Means for Nonprofit Organizations 
The end of the shutdown brings immediate relief, especially for nonprofits that work closely with federal agencies or serve people who depend on federal programs. 

Nonprofits, and state agencies they work with, will see: 

  • Resumption of federal grants and reimbursements, which were frozen or delayed during the shutdown. 
  • Stabilization in program operations, particularly for housing, nutrition, workforce development, behavioral health, and education services. 
  • Reduced pressure on community-based nonprofits, such as food banks and shelters, that saw demand spike as federal benefits were delayed. 

However, with the CR only lasting through January 30, nonprofits still face uncertainty: 

  • Planning remains difficult without full-year funding. 
  • Cash flow and reimbursement timelines may continue to lag as agencies restart operations. 
  • Another shutdown remains a possibility if Congress does not reach a long-term budget agreement. 

What This Means for Federal Benefit Recipients 
People who rely on federal programs, especially SNAP, were among the hardest hit during the shutdown, and they will need time to financially recover.   

Now that the government has reopened: 

  • Full SNAP benefits will return, ending the patchwork of partial payments and state-funded substitutes. 
  • Housing assistance, WIC, and other federal programs will restart normal operations. 
  • States will no longer need to cover benefits out of their own budgets. 

Still, the January 30 deadline means families could face uncertainty again early next year if Congress cannot agree on final spending bills. 

What Happens Next? 
During the next two months, Congress must negotiate: 

  • The remaining full-year appropriations bills. 
  • The promised vote on Affordable Care Act premium subsidies. 
  • A final budget that prevents another shutdown. 

Advocacy will remain essential to securing stable funding and protecting the communities nonprofits serve. Nonprofits should also begin planning now for the possibility that Congress may not reach a final budget agreement by the end of January. While we hope for a long-term solution, preparing for potential disruptions will help organizations stay resilient and continue delivering critical services. 

We are grateful for the partnership and updates from the team at the National Council of Nonprofits on the federal shutdown. For continued updates on the Federal Budget Development stay tuned to our DANA Public Policy Updates