What should higher education institutions know about the government shutdown?
The government shutdown is here. And with no immediate end in sight, leaders at universities, colleges and other higher education institutions are already navigating an impact on multiple areas of operations.
If it isn’t yet, federal funding for research, student programs and even visas for international students will all likely be affected, especially if the shutdown continues on through October.
What do you need to know — and how should your institution adapt to meet the moment? Keep reading to learn what’s happening and what to do next.
Why did the federal government shut down, and how long will the shutdown last?
Every year, Congress needs to pass an annual appropriations bills to fund the daily operations of the federal government. The most recently appropriated funding expired on October 1, 2025, at which point the government shut down because it no longer had the money to carry on functioning as usual.
- To end a federal government shutdown, Congress needs to pass a new appropriations bill. Lawmakers could also choose to pass a continuing resolution, which would maintain the funding levels put into place during the last round of appropriations.
- At this point, it’s unclear when Congress will be able to pass a funding bill to end the shutdown. Although Republicans control both the House and the Senate, they only hold 53 Senate seats, which means they need support from at least seven Democratic senators to get the 60 votes necessary to pass most legislation in the upper chamber.
- Senate Democratic leaders have stated that they won’t provide votes for an appropriations bill unless Republicans restore funding for the expanded Affordable Care Act subsidies set to expire at the end of the year and rein in efforts by the White House to block funds already authorized by Congress from being spent.
- This shutdown has already lasted longer than most, although the most recent previous shutdown, in 2018, went on for over a month. Given that the political environment is notably unstable, institutions should be prepared for a longer shutdown period and aware that the situation may not resolve until events create a substantial shift in the current dynamic.
- Note that a U.S. government shutdown does not directly affect state and local governments. However, it may interfere with federal funding for those governments and could also place additional strain on their resources.
How does a government shutdown affect universities, colleges and other higher education institutions?
A government shutdown affects core operations for institutions of higher education. Leaders may already be dealing with interruptions to funding, challenges with student work-study programs and difficulties for international students who need to obtain or renew a visa — obstacles that will grow stronger the longer the shutdown continues.
1. Disruptions to research funding
A government shutdown disrupts the flow of federal research grants. This is an area that has already seen significant upheaval in 2025 — with billions of dollars in grants left in limbo amid legal challenges to the White House’s efforts to claw back research funding — and a shutdown will cause additional obstacles for leaders to overcome.
The National Institute of Health (NIH) and the National Science Foundation (NSF) are both major sources of research grants for universities. Both are affected by a shutdown, which could halt or delay new grants from being awarded.
2. Challenges for student aid programs
Federal work-study programs often take a hit during a shutdown. These rely directly on federal funding, which means that if the shutdown drags on, institutions may run out of funds to pay administrators involved in overseeing work-study for their students.
Likewise, students who count on work-study to help pay for their expenses while in school could face significant financial hardship.
However, one potential bright spot is that many federal student aid programs have remained operational during past shutdowns. This means that federal student loan disbursements will likely continue, although loan forgiveness processing could be delayed.
3. Visa difficulties for international students
International students need a current student visa to attend school in the United States. Unfortunately, the shutdown will likely slow or halt approvals for new visas, renewals or changes in visa category.
Higher education leaders should be aware that this could be a real barrier for current or potential international students. Visa problems can significantly disrupt a student’s academic timeline and, in some cases, a student may be forced to abandon a program entirely.
What should higher education leaders do to mitigate a shutdown?
Higher education is not helpless in the face of a shutdown. While there is no easy solution here, strategies like contingency planning, communication and seeking alternative funding can help you to mitigate the harm caused by a pause in government operations.
- Contingency planning: Work with your finance team to develop short-term budget strategies to manage disruptions. Prioritize essential services and programs so that you can keep your core operations moving forward with as little difficulty as possible. If the shutdown is relatively brief, you may be able to ride it out simply by getting a little creative here.
- Communicate: Your whole community will feel the impact of a shutdown. It’s essential that you communicate clearly, honestly and regularly with both your workforce and student body about what’s happening and what it means. Create open lines of communication so those affected can ask questions and get connected to help or resources.
- Alternative funding sources: With the federal funding now temporarily shut off, consider where else you can find stopgap dollars. Explore private or foundation grants, state or local funding and community partnerships. If your institution has an endowment, now may also be a moment to turn to that for additional support.
How Wipfli can help
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