Guidance on Potential Government Shutdowns

Guidance for the U of A Campus - Updated December 19, 2024

The U.S. Congress has been working on a continuing resolution (CR) to extend funding for federal agencies and programs until a FY25 budget is passed and signed into law.  However, an anticipated agreement has yet to be reached on a CR. While a previously proposed CR would extend federal funding for all 12 appropriations through March 14, 2025, other outcomes are possible. If a CR is not passed by midnight on Dec. 20, 2024, we may face a government shutdown on Saturday, Dec. 21. Please note that the final December payroll will be distributed to university employees as planned on Dec. 23. If a government shutdown occurs, updated funding information will be required by Jan. 10, 2025, ahead of the payroll deadline.

To help us prepare for a potential government shutdown, the Office of the Provost may ask the Deans, Research Associate Deans and Campus Business Officers to provide alternative funding options for employees and positions tied to active federal grants. At this time, units are being asked to prepare for the potential of a shutdown.  

If the government has not extended funding by midnight on Friday, Dec. 20, a report will be produced that shows active sponsored projects by cost center, worktag, PI, agency and a list of employees that may be impacted if there is a government shutdown. Units should document internally any adjustments to workload due to changes in position funding source. 

Additional Guidance if There is a Government Shutdown 

In addition, in the past we have received guidance from the state to help us prepare for a potential shutdown. At this time, we do not anticipate a change in that past guidance. In a government shutdown, the administration, distribution, and funding of federal grants will be impacted. During a shutdown, each agency adheres to its contingency plan, which specifies the availability of its resources. A government shutdown does not mean that the university must immediately stop work on federally funded projects (unless we receive a stop work order).  

In line with guidance furnished from the state and federal agencies, the university has been reviewing its obligations and options with regard to its programs and employees supported with federal funds. We will take action consistent with that guidance while seeking to minimize any detrimental impact of the shutdown on university employees and operations.  

Based on the federal and state guidance we have received, campus units should review their federal programs and take the following actions, with regard to any programs that are not the subject of a specific stop-work notice by the relevant funding agency. (This memorandum addresses employees who have a majority of their appointment with the Fayetteville campus, and programs administered by the campus. For guidance relating to employees with a majority of their appointment with the Division of Agriculture, or programs administered by the Division, please contact the Division for guidance).  

  1. If the program has sufficient federal funding and authorization from current or previous federal grants to fund the program or position, it may do so as long as funding remains available. See agency contingency plans for specific guidance. 
  1. All tenured or tenure-track faculty who receive all or a portion of their salary from affected grants, contracts, or cooperative agreements should be paid if the federal agency has provided available funding. If there is a shortfall in paying the faculty salaries, the shortfall should be paid from sources other than state funds, such as funds derived from the recovery of indirect costs from federal grants, federal cooperative agreements and contracts such as RIF or start-up support or private funds. The university will seek reimbursement of such funds once federal operations resume; however, such reimbursement is not guaranteed. Any other arrangements will require advanced approval by the Provost. 
  1. All graduate assistants who receive all or a portion of their base pay (stipend) from affected grants, contracts, or cooperative agreements are to be treated the same as tenured or tenure-track faculty except that they may be moved to E&G sources of support if their duties are reassigned to support the teaching or student support mission if there is an assignment available.
  1. The positions for all other affected employees must be evaluated on a case-by-case basis. In some limited instances, sources of support (other than state funds) such as RIF or start-up support or private funds may be available to continue support for employees that are critical to continuation of project activities on at least a part-time basis. (Note that, to be eligible for continued insurance coverage under the university’s plan, employees must remain at least 50% appointed.) As with the situations above, the university will request reimbursement of such funds once federal operations resume. Unfortunately, otherwise, employees affected by the shutdown will need to be furloughed.

Even if contingency plans indicate that current federal funding will continue during shutdown, this could shift, or an agency might issue a stop work order at any time during the shutdown. That is why it is critical for units to continue to monitor these agency contingency plans. To be prepared should that happen, please have your staff continue to work on the EIB worksheet to move employees to an appropriate funding source as listed above. A furlough or any change in FTE appointment will require instructions from HR. 

Please note that the situation is fluid and that the short-term arrangements identified above will need to be evaluated on an ongoing basis, especially if the shutdown continues for an extended period of time. However, a short shutdown should have minimal adverse effects for the campus. 

Thank you for your patience and cooperation during this time. The Chancellor’s and Provost’s Offices, in conjunction with the offices of the Vice Chancellor for Governmental Relations and Vice Chancellor for Research and Innovation, will continue to closely monitor the FY25 appropriations process and keep our campus community informed accordingly. 

Sincerely, 

Terry Martin, Ph.D. 
Provost and Executive Vice Chancellor for Academic Affairs
Professor of Electrical Engineering