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Federal Shutdown: The Latest News for Nonprofits


As of October 22, 2025 
Delaware nonprofit leaders, your resilience is unmatched. You continue showing up for communities, keeping programs running, supporting staff, and adapting through uncertainty. Please know that DANA is here to support you. If your organization is experiencing challenges because of the shutdown, reach out, because we are in this together. 

The federal government shutdown continues but there are new signs of progress in negotiations. Below is a concise update on the current situation, Delaware-specific implications, and steps we can take together to ensure continuity of services and advocate for our sector. 

Current Status 

Republican leaders are now preparing for discussions with Democratic leadership to reopen the government, and congressional leaders are reportedly in talks with the White House about how to structure an extension of the Affordable Care Act’s enhanced premium tax credits, which expire this year.   

Republicans are also debating potential policy changes they may seek in exchange for extending the tax credits, such as imposing income limits for eligibility, requiring individuals to pay a minimum out-of-pocket premium, or freezing new enrollment in the program. Reports indicate Republicans may offer a two-year extension of the credits—paired with policy changes—as part of a larger package of bipartisan full-year spending bills or another Continuing Resolution (CR) to temporarily reopen the government. 

The U.S. Senate has floated options for a longer-term continuing resolution (CR) that could keep the government open through December, spring 2026, or even the full fiscal year. However, a full-year CR maintains level funding for federal programs and fails to keep pace with inflation increasing long-term risk for nonprofits delivering federally funded services. The Senate is simultaneously considering a vote on S. 3012 the “Shutdown Fairness Act” to guarantee pay for essential federal employees working without pay. No final budget or continuing resolution agreement has been determined at this time, but discussions remain fluid. In the interim, federal agencies continue operating under shutdown contingency plans. 

Key National Impacts 

  • $28 billion in federal infrastructure and clean energy funding paused. 
  • Travel delays worsening due to FAA staffing shortages at major airports (affecting PHL, used by Delaware residents). 
  • SBA small business loans remain paused, affecting contractors and local vendors. 

Regional SNAP directors have received guidance from the U.S. Department of Agriculture instructing states to delay depositing November benefits onto EBT cards while contingency planning continues. Officials in Colorado, Illinois, Minnesota, Oregon, New York, Pennsylvania, Texas, and West Virginia have warned that SNAP funds could run out within days without Congressional action. 

This disruption could impact more than 40 million people across the U.S., including: 

  • 16 million children 
  • 8 million older adults 
  • 4 million people with disabilities 

Anti-hunger advocates are urging the White House to release SNAP contingency funds immediately and provide states with clear guidance on November benefit amounts, as required by law, to ensure families can continue to access food. 

Delaware Context 

Thousands of Delawareans will feel the strain—both federal workers and families reliant on federally funded services. This includes TSA agents, postal employees, and federal contractors who are now missing or at risk of missing paychecks. 

For nonprofits, cash-flow stress and service demand are growing, as service providers are preparing for increased demand for food assistance, housing support, and behavioral health services. Organizations reliant on federal pass-through contracts or reimbursements will experience payment delays. Frontline staff pressures are increasing, especially for nonprofits already operating with limited reserves. Philanthropy may see an increase in emergency relief requests as federal delays continue. 

Delaware Resources 

Governor Matt Meyer has activated a Federal Government Shutdown Resource Page to support Delaware families, public servants, and partner organizations: https://governor.delaware.gov/resource-page-federal-goverment-shutdown/

The page includes: 

  • SNAP and WIC benefit guidance. 
  • Utility assistance and emergency support. 
  • Division of Unemployment Insurance contracts 
  • Support for federal workers and contractors 
  • 211 referral support for community services 

Action Items 

  1. Share Impact Stories 
    If your organization is experiencing grant delays, service disruptions, or workforce strain due to the shutdown, email [email protected]. Your stories guide real-time advocacy and response efforts. 
  1. Contact the Office of Governor Matt Meyer to advocate for SNAP and WIC Contingency Support in Delaware.  Ask about the release of state-level contingency funding and emergency coordination plans to protect Delaware families if federal SNAP and WIC funds run short.  “I urge the state to prepare emergency contingency funding and guidance to ensure uninterrupted SNAP and WIC benefits for Delaware families.” 
  1. Contact Delaware’s Congressional Delegation 
    Let them know how this shutdown affects your mission and community: 

We’re With You 

DANA is coordinating with state leadership, the National Council of Nonprofits, and funders 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.