Shutdown: What It Means for Grantmaking Agencies

CD Publicatons update1 at
Tue Oct 1 17:27:35 BST 2013

**Shutdown: What It Means for Grantmaking Agencies**So it's begun. The
politics of trying to get a continuing resolution (CR) through Congress
is dominating the headlines. The latest news is about House and Senate
members going to a joint conference to resolve differences in their
respective bills, with Republicans wanting to use the event to stop
Obamacare and Democrats wanting a "clean” CR but then using the
conference to discuss larger budget issues.

But what does this mean for grantseekers?

**Competitive grants**

Under a shutdown, for the most part government agencies are not able to
make any new awards or contracts, or sign agreements to continue
existing awards (albeit there are some exceptions). The staffers who
prepare RFPs are going to be on furlough, as are most (though not all)
officials with management responsibilities over grants that are already

The news isn't all bad:  The Federal Register will continue to be
published (mainly because of statutory requirements concerning the
posting of certain regulations), and RFPs which have already been
developed for FY 2014 can potentially be posted in the FR, alerting
potential applicants to competitions for which they can prepare grant
proposals. The government's website,, should also remain
operational, but with less staff support).

**Individual benefits**

Key programs such as Social Security and Medicare will continue to
provide benefits, as is the case with other entitlement programs where
payments are funded via permanent entitlement authority.

**Formula, block grants and other programs**

Activities funded with appropriations of budget authority that do not
expire at the end of the fiscal year, such as multiple-year
appropriations or appropriations which still have budget authority
available for obligation at the time of a funding gap, can continue.

Programs which involve the safety of human life or protection of
property, as long as the threat is real and imminent, can continue to

**Agencies plans****Department of Health and Human Services:** The vast
majority of employee furloughs would be among grantmaking and employee
extensive agencies such as the Administration for Children and Families,
the Substance Abuse and Mental Health Services Administration, the
Administration for Community Living and the Agency for Healthcare
Research and Quality.

**Centers for Medicare and Medicaid Services:** Funds for the Medicaid
and Children's Health Insurance program would be available today, due to
advanced appropriations enacted in the 2013 appropriations legislation.

**Medicare** would in the short term be relatively unaffected by a lapse
in appropriations

CMS would continue a "large portion” of **Affordable Care Act**
activities, including:

* Coordination between Medicaid and Health Insurance Marketplaces.

* Insurance rate reviews.

* Center for Medicare and Medicaid Innovation.

* Pre-existing Condition Insurance plan activities.

**Indian Health Service**: IHS would continue to provide direct clinical
health care services as well as referrals for contracted services that
cannot be provided through HIS clinics. However, HIS would not be able
to provide grant funding to tribes and urban Indian health programs.

**Health Resources and Services Administratio**n: HRSA would continue
activities funded through sources other than annual appropriations,
including Community Health Centers, the National Health Service Corps,
and Maternal Infant and Child Health Home Visiting Program. Among the
programs HRSA would not be able to provide payments for are the
Children's Hospital GME Program, AIDS Drug Assistance Program, and
Emergency Relief Grants and Comprehensive Care.

**Administration for Children and Families**: ACF would continue
mandatory funded programs such as the Personal Responsibility Education
and Health Professional Opportunity grant programs. Child support and
foster care services would continue because they receive advanced
appropriations in the FY 2013 appropriations process. ACF would not be
able to make new discretionary grants, nor continue quarterly formula
grants for TANF, child care, Social Services Block Grant, child welfare
programs and the Community Service Block Grant programs.

**Administration for Community Living**: ACL would continue to support
Aging and Disability Resource Centers and healthcare fraud activities
supported through mandatory appropriations.  Programs like Senior
Nutrition, Native American Nutrition and Support Services, Prevention of
Elder Abuse and Neglect, Long-Term Care Ombudsman program and Protection
and Advocacy for persons with developmental disabilities would not be

**Substance Abuse and Mental Health Services Administration:** No new
grants; existing programs such as suicide prevention or other national
hot lines would continue.

**National Institutions of Health: **Patient care would continue, but
no new research grants would be awarded.

**Center for Disease Control:** Most domestic programs would be put on
hold, with the exception of the Vaccines for Children program.

**Agency for Healthcare Research and Quality**: Oversight would continue
on projects funded by the Patient Center Outcomes Research Trust Fund.
No new grants or awards will be available.

**Bureau of Indian Education:** As BIA funds are forward funded (the
2013-14 school year was funded in FY 2013's appropriations), monies are
available to support ongoing school operations for the period of July 1,
2013-June 30, 2014.  

**Bureau of Indian Affairs:** Funds will be available to:

* Support critical services that address health and safety of tribes and
tribal members.

* Support investigation of allegations of child abuse and neglect.

* Provide law enforcement and detention operations on Indian lands, and
help coordinate tribal law enforcement activities.

* Provide transportation infrastructure on tribal lands.

* Wildlife fire management

**Fish and Wildlife Service:** Most wetlands conservation activities
administered by the North American Wetland Conservation Fund would
continue; these are funded through permanent accounts, not annual
appropriations, and in this case, "carryover balanced and new recipients
would be available.”

**Department of Housing and Urban Development**: All FY 2013 Indian
Housing Block Grant and Indian Community Development Block Grant awards
that have been recorded in the LOCCS system will be available during the
government shutdown; however, if the grantee did not return their signed
grant agreement before Oct. 1, grant funds will not be available in
LOCCS until the grant agreement process is complete. All processing will
stop during the government shutdown. The IHBG customer service center
will continue to operate but in limited capacity.

As for public housing, HUD will continue to address emergency situations
where failure to perform those functions would result in an imminent
threat to the safety of human life or the protection of property. HUD
will also keep open the line of credit contract for purposes of
disbursing funds for public housing. For purposes of a shutdown, PHA or
tribally-designated housing entities are not part of the federal
government and would not close. However, some TDHEs may need to change
their normal operating hours, as administrative funds are federal. 

HUD will not be able to fund additional rental assistance payments to
public and Indian Housing authorities. The agency predicts TDHEs should
be able to continue providing rental assistance for the month of
October. But, if the shutdown continues, some TDHE may not be able to
maintain normal operations.

Under a shutdown, the Office of Loan Guarantees (Sec. 184) would be
closed, so new case numbers, commitments or loan guarantee certificates
will be issued for the Indian Housing LGP or Native Hawaiian Housing LGP

**Info**: For more on this and other issues affecting funding for social
service programs, check out CD Publications at
( or call toll-free 1-800-666-6380
(tel:+18006666380), ext. 144.

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