Effects of the Government Shutdown on Human Services

As we move through the first week of the government shutdown many are concerned about the effects on grants and other resources needed to provide essential human services. What follows is a short summary of the shutdown effects on major grant programs. Federal agencies' shutdown contingency plans are available online through the U.S. Office of Management and Budget.

The Child Care and Development Block Grant (CCDBG). CCDBG, funded through Temporary Assistance for Needy Families (TANF), will not distribute new funds until the shutdown is resolved. States that use up to 30 percent of their TANF dollars for child care may use carryover funds to continue services. But, states are prohibited from transferring TANF to CCDBG.

Head Start. Grants used for the year Sept. 1, 2013 to Aug. 31, 2014 will not be affected by a shutdown but grants used from Nov. 1, 2013 to Oct. 31, 2014 will be. The affected grantees may have to reduce or cease operations during the shutdown.

Low-Income Home Energy Assistance Program (LIHEAP). LIHEAP payments will not be made until the shutdown is over. States may use carryover funding to help fill the gap.

Medicaid and Children’s Health Insurance Program (CHIP). States will receive Medicaid reimbursements even if there is a lapse in appropriations. Additionally, funding for CHIP will continue under a shutdown.

TANF. TANF’s authorization expired on Oct. 1, 2013. Until Congress passes legislation extending TANF, there will be no additional funding. States are permitted to use their unspent federal TANF funds from prior years for expenditures.

Title IV-E-Foster Care and Adoption Assistance. These funds will not be affected by a short-term shutdown.

Social Services Block Grant (SSBG). Federal SSBG payments will not be allocated until the shutdown is over.

Special Supplemental Food Program for Women, Infants, and Children (WIC). There will be no additional federal funds for WIC in October. However, states are able to carry over 1 percent of their grant to the following year. The Food Research and Action Centers notes many states will still not be able to support the program through October.

Supplemental Nutrition Assistance Program (SNAP). SNAP funding will be available to recipients for the month of October.

Supplemental Security Income (SSI). The SSI program will be available for the first fiscal quarter.

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