• This shutdown feels different.’ States might not get repaid when government reopens.

Going without federal reimbursement for shutdown costs could force states to cut their own budget priorities.

By:Kevin Hardy-October 9, 20255:00 am – https://stateline.org

 A man closes the entrance to Fort McHenry National Monument and Historic Shrine on Oct. 3 in Baltimore because of the federal government shutdown. States are currently covering costs of some federal programs, but it’s unclear whether they will be repaid once the government reopens. (Photo by Andrew Harnik/Getty Images)

States are doing what they generally do during a federal government shutdown: continuing to operate programs serving some of the neediest people.

That means schools are still serving federally subsidized meals and states are distributing funding for the federal food stamp program. For now.

If the shutdown drags on and federal dollars run out, states can only keep programs going for so long. States may choose to pay for some services themselves so residents keep their benefits.

But this time, state leaders have new worries about getting reimbursed for federal costs once the federal spending impasse is resolved. That’s traditionally been the practice following a shutdown, but the Trump administration’s record of pulling funding and targeting Democratic-led states has some officials worried about what comes after the shutdown.

Many states already struggled to balance their own budgets this year. And some fear going without federal reimbursement for shutdown costs could force states to make painful cuts to their own budget priorities.

https://stateline.org/2025/09/16/trump-has-crushed-offshore-wind-plans-but-states-havent-quite-given-up-hope/embed/#?secret=vDEq8ZSYcA#?secret=xQRnyCS1Td

Nevada State Treasurer Zach Conine, a Democrat, said the administration has not made good on its word to states in recent months — freezing some congressionally approved funding and cutting already awarded grants. So it’s likewise unclear whether the federal government will follow previous practice and reimburse states for covering shutdown costs of crucial federal programs such as food assistance.

“I think everything is a risk with this administration. … We in the states are kind of left holding the bag yet again as the federal government tries to sort out what it wants to be when it grows up,” he told Stateline.

Nevada entered the shutdown with more than $1.2 billion in reserves. Last week, Republican Gov. Joe Lombardo’s office said in a statement that state funds would be adequate to cover “a short period of time with minimal disruption to services.”

But the governor’s office said a shutdown of more than 30 days would cause more significant challenges for the state.

Lombardo’s office did not respond to Stateline’s questions. But last week, it released a three-page document on the shutdown, saying it expected the federal government to reimburse states once the budget stalemate is resolved.