Food Assistance Threatened and Federal Workers Miss First Paycheck as Government Shutdown Reaches Day 27, with No Funding Deal in Sight
Oct 27, 2025
By Kim Johnson, NLIHC Senior Director of Policy
An estimated 1.4 million federal employees did not receive a paycheck last week because of the ongoing federal government shutdown. Today (October 27) marks the 27th day of the shutdown, the second longest in U.S. history.
Congress has not passed funding bills for fiscal year (FY) 2026, which began on October 1, or a continuing resolution (CR) to temporarily maintain funding for federal programs and services. Democrats are withholding their support of a CR to pressure Republicans into agreeing to an extension of Affordable Care Act (ACA) tax credits slated to expire at the end of the year. Without an extension, health insurance premiums will increase, and millions will be at risk of losing their healthcare coverage. Open enrollment for ACA coverage in 2026 begins on November 1; without an extension of the credits, annual premium payments are expected to increase by 114%, or $1,016, on average for subsidized enrollees.
Senators Consider Bills to Pay Federal Workers
The Senate voted on October 23 on two different bills to pay federal workers during the shutdown. The first, introduced by Senator Ron Johnson (R-WI), would pay members of the armed services and federal employees who were working during the shutdown; the second, introduced by Senator Chris Van Hollen (D-MD), would also pay furloughed federal employees, and included language that would prohibit the administration from carrying out mass firings of federal employees during a government shutdown. Neither bill had the support needed to advance; still, Senators expressed optimism they could soon reach an agreement on a compromise to pay federal employees.
Republicans Submit Letter Supporting Continued Operation of CDFI
Senator Mike Crapo (R-ID) and Representative Young Kim (R-CA) led 103 of their Republican colleagues in an October 23 letter to Treasury Secretary Scott Bessent and Office of Management and Budget (OMB) Director Russell Vought. The lawmakers expressed their “continued support for the Community Development Financial Institution (CDFI) Fund,” and “strongly [urged] the Administration to continue carrying out the statutory obligations of the CDFI Fund.” OMB issued a Reduction in Force (RIF) notice to all CDFI staff on October 10, effectively eliminating the office. Lawmakers emphasized the important role CDFIs play in supporting economic development projects in rural and tribal communities, and noted “it is unclear how these programs will continue to operate if the CDFI Fund's obligations cease to function.”
Food Assistance Under Threat
The U.S. Department of Agriculture (USDA), the federal department responsible for administering food assistance, rural affordable housing and community development funds, and other important programs, announced it would run out of funding for the Supplemental Nutrition Assistance Program (SNAP) on November 1. SNAP provides food assistance to about 42 million people with low incomes, about one in eight people in the U.S. As with housing assistance, the vast majority of those served by SNAP are families with children, people with disabilities, older adults, caregivers, students, and workers paid low wages.
Analysts at the Center on Budget and Policy Priorities (CBPP) point out the Trump administration has tools at its disposal to ensure SNAP benefits are paid for all households through November. CBPP notes “nearly two-thirds of the funds needed for a full month of benefits are available in SNAP’s contingency fund, and must be used when regular funding for SNAP runs short,” and that the Trump administration is legally required to release these funds in the event of a shortfall. The report also states that the administration can “use the discretionary authority it used to transfer funds into [the Supplemental Nutrition Program for Women, Infants, and Children, WIC] earlier this month, or any other available legal authority to augment the SNAP contingency funding, to fund the full amount of November SNAP benefits.”
USDA responded to calls from advocates and congressional Democrats to tap into SNAP’s contingency fund in an October 24 memo, asserting that “SNAP contingency funds are only available to supplement regular monthly benefits when amounts have been appropriated for, but are insufficient to cover, benefits. The contingency fund is not available to support FY 2026 regular benefits, because the appropriation for regular benefits no longer exists.” USDA’s shutdown contingency plan, since removed from the USDA website, notes that SNAP contingency funds “can be used for State Administrative Expenses to ensure that the State can also continue operations during a Federal Government shutdown.”
In addition to uncertain funding, new work reporting requirements for SNAP benefits will take effect on November 1. These requirements, enacted through the One Big Beautiful Bill Act (H.R. 1) passed in July, are expected to result in an estimated 2.4 million people losing their assistance each month until 2034. With less food assistance, as well as the potential for increased medical insurance premiums, families with low incomes will have even tighter budgets and less money every month for the cost of other necessities, like housing.
Shutdown Risks for HUD-Assisted Households
Households who receive HUD rental assistance — including Housing Choice Vouchers, Project-Based Rental Assistance, and public housing — should have their rent paid at least through November. However, the longer a shutdown continues, the greater the risk to assisted households, and the greater the disruption to essential federal services and programs. The National Housing Law Project (NHLP) published two updated shutdown resources, one for tenants outlining the legal rights of households receiving HUD assistance, and the other providing an overview of the impacts of a government shutdown for legal aid attorneys.
NLIHC will continue working with our partners to monitor the shutdown, its potential effects on HUD programs, and the people and communities they serve.
The Need for Additional Funding for Voucher Renewals in a Final FY26
The shutdown was triggered by the beginning of the new federal fiscal year (FY), which began on October 1. Once a CR is in place, members of Congress will still need to come together to reach a final agreement in FY26 spending bills, including the Transportation, Housing, and Urban Development (THUD) spending bill that funds HUD’s vital affordable housing, homelessness, and community development programs.
While both the House and Senate FY26 THUD spending bills reject the drastic spending cuts and programmatic overhauls proposed in President Trump’s FY26 budget request, neither spending bill provides sufficient funding to ensure renewal of all existing Housing Choice Vouchers (HCVs) or Emergency Housing Vouchers (EHVs). Without sufficient funding, vouchers will be lost through attrition – when a household no longer needs their voucher, the voucher cannot be reissued to a new family because it is no longer attached to funding. When renewal funding is insufficient enough – or when funding is cut – households that rely on a voucher to keep a roof over their heads actively lose their rental assistance, putting them at risk for housing instability, eviction, and in worst cases, homelessness.
At current funding levels, over 2.4 million households receive rental assistance, accounting for just one in four households who qualify. Under the House’s FY26 spending bill, an estimated 181,900 fewer households would be served; in the Senate, 107,800 fewer households would receive rental assistance. The loss of these vouchers would disproportionately affect older adults, people with disabilities, and families with children.
Bipartisan Support from Local Leaders for Voucher Funding
In a recent joint op-ed, democratic Mayor Todd Gloria of San Diego, California, and republican Mayor Mark Freeman of Mesa, Arizona, voiced their bipartisan support for continued funding for the EHV program, to ensure current recipients do not lose the assistance they rely on for a safe, stable home.
“In cities across America, we share a simple truth: offering a hand to those most in need isn’t a red issue or a blue issue, it’s a community issue,” the mayors state. “Supporting programs like emergency housing vouchers is a practical way to strengthen our communities. Stable housing for seniors, veterans and families reflects a commonsense principle: when we give people security, they contribute back to the neighborhoods they call home. Washington should see this not as a partisan issue but as an opportunity to preserve the strength of families and honor those who have given so much.”
Take Action
Use NLIHC’s toolkits and resources to take action on FY26 funding, including by:
Using NLIHC’s advocacy toolkit, “Opposing Cuts to Federal Investments in Affordable Housing,” to call on Congress to protect and expand affordable housing and homelessness resources, including NLIHC’s priorities:
Full funding to renew all existing tenant-based voucher contracts, to ensure the people and families who rely on an HCV or EHV to keep a roof over their heads do not lose their assistance. Check out the “EHV Funding Cliff Mobilization Toolkit” for more information, including talking points and resources.
$4.922 billion for HUD’s Homeless Assistance Grants (HAG) program, and for HUD to stick to its commitment to a two-year Notice of Funding Opportunity (NOFO) for the Continuum of Care Program.
$5.7 billion for public housing operations, and at least $5 billion to address public housing capital needs.
$15 million for the Eviction Protection Grant Program (EPGP), as provided in the Senate’s spending bill.
At least $1.3 billion for HUD’s Indian Housing Block Grant (IHBG) program and $150 million for IHBG-Competitive funds, targeted to Tribes with the greatest needs.
The toolkit includes talking points, advocacy materials, engagement ideas, and more resources for advocates to weigh-in with their members of Congress on the importance of these vital resources!
Emailing or calling members’ offices to tell them about the importance of affordable housing, homelessness, and community development resources to you, your family, your community, or your work. You can use NLIHC’s Take Action page to look up your member offices or call/send an email directly!
Sharing stories of those directly impacted by homelessness and housing instability. Storytelling adds emotional weight to your message and can help lawmakers see how their policy decisions impact actual people. Learn about how to tell compelling stories with this resource.
National, state, local, Tribal, and territorial organizations can also join over 2,800 organizations on CHCDF’s national letter calling on Congress to support the highest level of funding possible for affordable housing, homelessness, and community development resources in FY26.
Visit NLIHC’s Advocacy Hub for more information and resources that can help you take action and help protect the affordable housing programs people rely on.