As of February 2, 2026, the partial US federal government shutdown persists since January 31, affecting agencies without funding past January 30.
Agency Funding Impacts
DHS, DOD, HHS, FAA, and IRS face immediate disruptions—DHS/ICE funding stalled over Democratic demands to cap it at two weeks amid agent shooting backlash; DOD/HHS non-essential ops halted; FAA furloughed 10,000+ staff; IRS on contingency until February 7 using prior-year funds.
Federal govcons can endure payment delays, frozen new awards/modifications, stop-work orders on non-exempt contracts (exempt: active military, public safety), and facility access denials—small businesses may suffer most without furlough backpay equivalents. State/local govcons can see indirect hits via stalled federal pass-through grants for infrastructure/services, triggering bid repricing, crew demobilization, and cash crunches on cost-reimbursable deals.
The partial shutdown is expected to be resolved soon however, uncertainty continues.
