1. Government Reopens and Agencies Resume Grant Operations
The recent federal government shutdown has officially ended, and federal agencies have resumed normal operations. With staff back at work, previously paused grant programs, application reviews, and award processing are restarting.
For many nonprofits, educational institutions, and state and local governments, this marks the reopening of key communication channels with program officers and the resumption of regular grant administration activities.
2. Key Funding Agreements for FY 2026 Appropriations
The funding agreement that ended the shutdown provides short-term stability for many federal grant programs:
- Most federal agencies are funded through a continuing resolution that extends operations through January 30, 2026.
- Some agencies, including the U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA), have received full-year appropriations, giving their grant programs a clearer path forward for the rest of the fiscal year.
- Major mandatory programs, such as the Supplemental Nutrition Assistance Program (SNAP) and child nutrition programs, continue to receive significant funding, helping to stabilize services for millions of households.
While the exact numbers and line items vary by agency, the overall message is that core safety-net and health-related programs are funded and operational, which is crucial for grantees whose work depends on these streams.
3. What’s Still Delayed or Under Review
Although the shutdown has ended, not everything returns to normal immediately. Some areas remain delayed or under review:
- Backlogs in grant processing: Applications that were submitted before or during the shutdown may now face extended review times as agencies work through accumulated backlogs.
- Delayed payments and reimbursements: Certain programs, including early childhood and community-service grants, are catching up on payments and reimbursements that were paused during the shutdown period.
- Uncertain future budgets: Because many agencies are funded only through a short-term measure, long-term program decisions and multi-year grant planning may still be cautious or delayed.
- Potential program adjustments: Some agencies are reviewing priorities and may refine or adjust their funding focus for upcoming Notices of Funding Opportunity (NOFOs).
For grant seekers and current awardees, this means it is important to stay in close contact with program officers and regularly monitor official communication channels for updated timelines and guidance.
4. What the Reopening Means for Grant Seekers and Current Awardees
For Grant Seekers
With agencies back online, NOFOs and grant announcements are expected to resume. This is an ideal time to:
- Review upcoming opportunities on Grants.gov and individual agency websites.
- Prepare or update standard application materials, such as organizational histories, capability statements, and budgets.
- Revisit proposals that were in development or on hold during the shutdown.
For Current Awardees
Organizations that already have federal awards should:
- Contact their program officers: Confirm any changes to project timelines, reporting deadlines, or performance periods that may have been affected by the shutdown.
- Document impacts: Carefully document any project delays, additional costs, or disruptions experienced during the shutdown, in case adjustments or amendments are needed.
- Monitor payment status: Check on pending drawdowns or reimbursement requests through the appropriate payment systems.
Clear communication and documentation will help ensure continued compliance and reduce the risk of issues during audits or monitoring visits.
5. Key Sectors to Watch
Several sectors are particularly affected by the post-shutdown funding landscape:
- Nutrition and Food Security: Programs like SNAP and child nutrition are fully funded, which is vital for organizations working on hunger relief and food access.
- Health and Public Health: Agencies such as HHS, CDC, and FDA are resuming normal operations, including public health, research, and regulatory grant programs.
- Education and Early Childhood: Programs such as Head Start and other education-related grants are working through delays and resuming services, but some local providers may still experience short-term gaps.
- Research and Innovation: Science and research agencies are again reviewing and awarding grants, though there is ongoing discussion about long-term funding levels and potential future cuts.
Organizations in these sectors should monitor agency updates closely and be prepared for both resumed opportunities and possible shifts in priorities.
6. What to Watch Next
As the federal government moves beyond the immediate shutdown period, grant-focused organizations should keep an eye on:
- Final FY 2026 appropriations bills: Once full-year appropriations are passed for all agencies, we will have clearer insight into long-term funding levels and program adjustments.
- New and updated NOFOs: Agencies may compress timelines or modify program requirements to make up for lost time, so tracking deadlines is critical.
- Policy and priority changes: Agencies may refine their strategic priorities, potentially affecting which types of projects are most competitive for funding.
- Guidance on flexibility: Look for official guidance on allowable flexibilities related to performance periods, reporting deadlines, and cost allowability in light of the shutdown.
7. Conclusion
The end of the federal government shutdown brings welcome stability to the U.S. grants and funding landscape. While immediate operations have resumed and critical programs are funded, the ripple effects of the shutdown and the short-term nature of some appropriations mean that uncertainty has not disappeared completely.
For grant seekers and current awardees, the best strategies in this period are to stay informed, communicate proactively with federal partners, and maintain flexibility in planning. As more details emerge about long-term appropriations and program priorities, USGrants.org will continue to monitor developments and share updates to help you navigate the evolving federal funding environment.
In case you've missed those:
U.S. Government Grants and Funding Updates - November 2025
Latest U.S. grant and funding news for November 2025, including EDA recovery funds, SNAP changes, and the impact of the federal shutdown. [read more]
U.S. Government Grants Update - October 20, 2025 (and what to watch this week)
Published Monday, October 20, 2025. Focused strictly on developments today and what to watch through the rest of the week. [read more]
The landscape of U.S. government grants is shifting rapidly amid ongoing budget uncertainty and a continuing federal shutdown.
While some programs are being expanded or reinstated, others face major funding cuts, freezes, or administrative reform. Here is a summary of the most notable developments this month. [read more]
Federal Shutdown Sparks Widespread Grant Delays: Whats Happening and What Grant-Seeking Entities Must Know
Learn how the October 2025 U.S. federal government shutdown is delaying grant awards, reimbursements, and agency operations nationwide — and what organizations can do to prepare. [read more]
October 2025 U.S. Federal Grants Update: Shutdown Delays, Funding Reversals, and New Awards
Stay updated on the latest U.S. government grant news - shutdown delays, funding reversals, and new infrastructure awards announced in October 2025. [read more]

