The White House Office of Management and Budget (OMB) posted a document on “Frequently Asked Questions During a Lapse in Appropriations” for federal agencies that addresses the general principles that govern an agency’s operations during a government shutdown. Section II of the OMB document discusses the impact of a shutdown on federal government contracts and grants. Section II.B deals specifically with the shutdown’s impact on “previously awarded” contracts and grants and Section II.C addresses federal agency payments to contractors and grantees in relation to prior awards.
Relatedly, the White House Council of Economic Advisers (CEA) posted a slide deck on the economic consequences of a government shutdown, which include reducing “American prospects through lower growth, higher unemployment,” and disruptions to federal benefit programs. Among other things, the CEA noted that the federal government awards approximately $15 billion in federal contracts to businesses each week, and a shutdown means “[t]hese companies would lose funds due to lack of available contract work, not be reimbursed for completed projects, and have to lay off workers.”