Frequently Asked Questions About Government Shutdowns and the NU System

What is a government shutdown?

A government shutdown happens when Congress does not appropriate funds or pass a temporary extension (called a continuing resolution). Without funds, many federal agencies are required by law to stop non-essential operations until funding is restored.

Has this happened before?

Yes. The most recent partial shutdown of some federal agencies was in late 2018–early 2019 and lasted 35 days. The most recent full shutdown of the federal government began on October 1, 2013, and lasted 16 days. Past shutdowns have varied in length—from a few days to more than a month.

How could a shutdown affect higher education and the University of Nebraska?

Student Aid

• Federal student aid (Pell Grants, loans, GI Bill benefits) is typically not affected in the short term. Most financial aid is funded a year in advance and already disbursed at the beginning of the semester.
• Students applying for new aid or loan forgiveness may experience processing delays because the U.S. Department of Education furloughs most employees during a shutdown.
• Financial aid staff should be aware that while disbursement continues, regular interaction with Federal Student Aid (FSA) staff may be disrupted if the shutdown extends.

Research and Federal Grants

• Existing grants already awarded will generally continue, but new grants, renewals, or reviews of pending applications cannot be processed during a shutdown. Federal agencies may have backlogs, missed panels, and canceled reviews.
• Stop-work orders or delayed reimbursements for ongoing federally funded projects may occur. Researchers should inquire with program managers about agency contingency plans.
• Collaborations requiring access to federal laboratories or other government resources may face significant challenges during a shutdown.

Veterans and Military-Affiliated Students

• GI Bill benefits are usually already certified before fall, but a prolonged shutdown could slow benefit processing.

International Students and Scholars

• Consular services (visas, passports) may continue if funds are available, but processing times can slow.
• Students seeking Optional Practical Training (OPT) are typically still able to apply but should anticipate slower processing.
• Other immigration functions, such as changes of visa status, could be delayed if federal staff are furloughed.

Regulations

• The issuance of proposed and final rules, review of comments, and occurrence of other regulatory actions could be delayed during a shutdown.

Government Services

• Many federal employees are furloughed and unable to answer phones or emails. This means less support for students, researchers, and administrators trying to resolve issues.
• The longer a shutdown continues, the greater the backlog when agencies reopen.
• The White House Office of Management and Budget (OMB) has directed agencies to prepare for possible reductions in force (RIFs) rather than temporary furloughs. This creates uncertainty about how quickly normal operations will resume after the shutdown is resolved.

What should NU students, faculty, and staff do?

• Stay informed. The NU System will share updates as information becomes available.
• Plan for possible delays. If you are working on grant submissions or federal benefit processing, anticipate slower response times.
• Reach out if you have concerns. Each campus has designated contacts for financial aid, research administration, and international student support.