As anticipated, the federal government officially entered a shutdown on October 1, 2025. While shutdowns often disrupt many federally funded services, the good news is that community providers, such as TPA members, are not expected to see any immediate disruption in Medicaid-funded services or payments from CMS, provided the shutdown does not extend beyond the end of this year. However, uncertainty remains. According to the U.S. Department of Health and Human Services’ (HHS) FY 2026 Contingency Staffing Plan, nearly half (47%) of CMS staff and 82% of ACL staff will be furloughed during the shutdown. Staff reductions could delay critical processes such as state plan amendments and waiver approvals. The full extent of the impact will depend on how long the shutdown lasts. Here are some key highlights we noted from HHS’ Contingency Plan:
- Medicaid Funding: CMS will have sufficient funding for Medicaid to cover the first quarter of FY 2026.
- CMS Staffing: 3,311 (53%) of CMS staff will be retained, including 3,105 (50%) exempt and 206 (3%) excepted staff.
- ACL Staffing: 22 (18%) of ACL staff will be retained, including 12 (10%) exempt and 10 (8%) excepted staff. ACL will continue limited activities funded through carryover and reimbursement.
- HHS Overall: Approximately 47,257 staff will be retained, while 32,460 will be furloughed.
You can click here for full details on the HHS contingency plans
Despite the shutdown, providers continue to deliver high-quality services that enable people with disabilities to be fully included in their communities. This is also a critical opportunity to raise awareness with Congress and policymakers about the essential impact of these services. You can help by sharing stories about your work on social media, using the #CreateCommunity hashtag, and highlighting examples of how your services support people with disabilities to live, work, and thrive. These stories demonstrate that even while the federal government is shut down, providers remain steadfast in showing up and stepping up for individuals with intellectual and developmental disabilities and autism.
As always, we will continue to monitor this and provide updates as we learn them. Thank you for your continued commitment to creating community and supporting inclusion.