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The Federal Budget: Spending, Taxes, and Debt

Federal Agency Shutdown Plans for the Second Partial Shutdown of FY 2026

The Federal Budget: Spending, Taxes, and Debt Policy Rapid Response BlogFebruary 3, 2026 By Matthew Dickerson
The federal government is experiencing another partial government shutdown after the continuing resolution expired on January 31, 2026, for agencies funded by six appropriations bills. The six appropriations bills that have lapsed include:
  • Defense
  • Financial Services and General Government;
  • Department of Homeland Security;
  • Departments of Labor, Health and Human Services, and Education, and Related Agencies;
  • National Security, Department of State, and Related Programs; and
  • Departments of Transportation, and Housing and Urban Development, and Related Agencies
This is the second shutdown of fiscal year (FY) 2026. The first shutdown lasted a record 43 days, from October 1, 2025, to November 12, 2025. While the first shutdown covered all 12 appropriations bills, full-year funding has been enacted for the other six bills. Each federal agency is required to have a plan to respond to a lapse in appropriations. These plans are often referred to as “contingency plans” or “shutdown plans.” While a lapse in appropriations is often called a “government shutdown,” as the agency contingency plans show, it could be more accurately understood as a “temporary slowdown of nonessential government activities.” The vast majority of the federal workforce is retained  and continues their work, even during a “shutdown.”

Contingency Plans for Major Federal Agencies Experiencing a Shutdown

The table below provides an updated analysis of the most recently available contingency plans for major federal agencies affected by the current shutdown, showing the number of employees who would be retained and non-essential employees who would be furloughed during a lapse in appropriations.

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Click to expand  PDF About half of the affected agencies updated their shutdown plans since the first FY 2026 shutdown. If an agency does not update its plan, the prior plan remains in place. The table below compares the shutdown plans for the shutdown that began on October 1, 2025, to the plans in place for the shutdown beginning on January 31, 2026.

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Click to expand  PDF The tables show contingency plans publicly available as of February 2, 2026.

“Essential” Activities May Continue Despite a Lapse in Appropriations

During a lapse in appropriations, certain essential activities can be deemed “excepted” from a shutdown. The Office of Management and Budget (OMB) provides guidance on excepted functions that may continue during a lapse in appropriations. A government function may be carried out in the absence of appropriations if it is:
  • Expressly authorized or required by another law or court order;
  • Necessary to execute other lawfully continuing functions;
  • Necessary to discharge the President’s Constitutional duties and powers; or
  • Addressing an imminent threat to the safety of human life or the protection of property.
Furthermore, many programs, projects, and activities will already be fully funded. As OMB guidance clarifies, “functions that are financed with appropriations that have not lapsed may continue” during a shutdown.

Author

Matthew D. Dickerson

Matthew D. Dickerson

Director of Budget Policy

Matthew D. Dickerson is Director of Budget Policy at the Economic Policy Innovation Center (EPIC). Dickerson is recognized as an expert on fiscal policy issues, including the budget, appropriations, and entitlement reform. His articles have been featured in the Wall Street Journal , the Miami Herald , National Review , the Sacramento Bee , the Washington Times , the Baltimore Sun , The Hill , the Washington Examiner , and other outlets. Prior to joining EPIC, Dickerson served as Senior Policy Advisor on the staff of the House Budget Committee, where he helped lead development of the fiscal year 2024 budget resolution. He has a dozen years of experience on Capitol Hill, including as a senior staffer with the Republican Study Committee (RSC), the caucus of conservatives in the House of Representatives. Under four different RSC chairmen, Dickerson held senior level roles including Policy Director and Senior Policy Staff. Additionally, he served as Legislative Director and other policy positions for the late Congressman C.W. Bill Young (R-FL), a former Chairman of the powerful House Appropriations Committee. During his tenure at The Heritage Foundation, Dickerson was Director of the Grover M. Hermann Center for the Federal Budget. In this capacity, he oversaw a team of budget analysts and economists researching diverse subjects including spending, entitlements, budget process, tax, labor, pensions, and infrastructure issues. He has also been a Policy Manager at Americans for Prosperity, where he supervised a team of fellows and analysts covering a variety of federal and state policy issues. Dickerson is a graduate of the College of William and Mary in Virginia and holds a Bachelor of Arts in Government and History.

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