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Which agencies are currently affected by the federal shutdown?
Executive Summary
The shutdown affects a wide swath of federal agencies, but impacts vary sharply: some departments are largely furloughing staff and pausing nonessential services, while others continue operations because of mandatory funding, fee-supported budgets, or designation of “excepted” employees. Federal contingency plans show heavy furloughs at agencies such as Education, Labor, EEOC and NLRB, while departments tied to national security, benefits delivery, or self-funded operations—like DHS, Defense, Social Security, USPS and VA—largely continue essential functions, often with employees working without pay [1] [2] [3].
1. Why some agencies shut down while others stay open — the funding and legal mechanics that matter
Federal agencies are treated differently during a lapse in appropriations because of three legal and budgetary mechanisms: mandatory (permanent) funding that continues absent annual appropriations, user-fee or trust-fund financing that lets operations proceed, and the statutory designation of “excepted” employees whose work protects life or property. Agencies with mandatory funding or independent revenue streams—such as the Social Security Administration for benefits, the U.S. Postal Service for mail operations, and select trust-funded programs at the Department of Veterans Affairs—remain operational. Agencies that rely on annual discretionary appropriations must implement contingency plans that furlough non-excepted staff and suspend nonessential activities [2] [4]. These rules explain why the IRS and DHS can both be “operational” yet still report large numbers of furloughed or unpaid workers: operations deemed essential continue, while routine functions pause [1].
2. Who is getting furloughed — the agencies reporting large layoffs or pauses
Several agencies publicly reported large-scale furloughs or reductions in force in contingency notices and media briefings; the Department of Education furloughed roughly 1,485 of 1,700 employees (excluding Federal Student Aid), the Department of Labor furloughed about 9,775 of 12,916 staff, EEOC and NLRB reported near-total pauses in nonessential operations, and multiple divisions across HHS and EPA faced steep reductions [1] [5]. These numbers reflect agencies whose primary appropriations are discretionary and where routine regulatory, grant-making, or administrative work stops. Those furloughs slow services such as loan approvals, labor-enforcement cases, and regulatory inspections, creating cascading effects on businesses and citizens who rely on uninterrupted processing [3] [5].
3. Who continues working and why — essential services, national security, and fee-funded operations
Agencies charged with national security, law enforcement, and benefits delivery typically keep employees on duty as “excepted,” even without current pay, to avoid immediate harm. DHS, DoD, TSA, air-traffic control, Customs and Border Protection, Veterans Affairs, and consular services at State are repeatedly cited as continuing core functions, with large majorities of staff remaining active to protect life, property, or national security [2] [1] [4]. Separately, entities funded outside annual appropriations or by fees—such as the U.S. Postal Service and some aspects of the IRS—can maintain operations though service levels and customer assistance may be diminished as non-excepted employees are furloughed [2].
4. The downstream effects and timing — why the shutdown’s pain grows over time
Initial continuity often masks mounting problems: agencies with limited reserve funding or fee balances will exhaust those sources, forcing deeper cutbacks over days and weeks. Food-safety inspections, regulatory oversight, small-business loan approvals, and customer service lines are particularly vulnerable, and some programs that appear safe at first—SNAP administration, WIC, and certain grant disbursements—face funding cliffs that create rapid service disruptions if the shutdown persists [3] [4] [6]. The uneven patchwork of who is salaried, who is unpaid but working, and who is furloughed means the economic and programmatic impacts are unevenly distributed across citizens, states, and private-sector partners [7] [6].
5. What remains uncertain and where to watch for updates
Contingency plans and public statements provide snapshots but not always full counts; total affected employee numbers and precise service interruptions continue to shift as agencies publish updates and as reserve funds deplete. The Office of Management and Budget no longer supplies a centralized, detailed list, pushing journalists and stakeholders to monitor individual agency releases and inspector-general updates for the most current figures [4] [7]. Watch for agency notices, IG reports, and updated analyses from major outlets dated in October 2025 for the latest totals and sectoral impacts; these will clarify how furloughs evolve into prolonged service disruptions if appropriations are not enacted [6] [7].