Federal Aid to State and Local Governments: Select Issues Raised by a Federal Government Shutdown [April 7, 2014]   [open pdf - 470KB]

"State and local governments rely upon federal aid to fund projects and provide services that benefit communities and individuals. Interruptions in these activities can have a negative effect on the beneficiaries of federal aid. These activities rely upon the following grant administration activities: [1] Executing grant award agreements; [2] Processing payments to grantees; and [3] Investigating waste, fraud, and abuse allegations. A federal government shutdown may cause a minor disruption or may result in the cessation of these activities depending on the following factors: [1] The timing and length of the federal government shutdown; [2] Choices made by federal, state, and local officials; and [3] Congressional action since the last federal government shutdown. Federal, state, and local officials make choices involving: [1] Covering gaps in federal funding with uncertainty of reimbursement; [2] Furloughing grants administration personnel; and [3] Including grants administration personnel in contingency planning. The administrative, political, and economic environment will vary in every potential and actual federal government shutdown. Predicting the effect of a federal government shutdown on federal grant recipients and beneficiaries relies upon evaluation of these factors at the time of the lapse in federal funding and consideration of Congressional action since the last shutdown. This report will evaluate these factors and present a selection of legislative options to mitigate the effect of a future federal government shutdown."

Report Number:
CRS Report for Congress, R43467
Public Domain
Retrieved From:
Via E-mail
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