The federal government has entered a shutdown, and—unlike past lapses—agencies have been told to consider reductions in force (RIFs) for programs that lose funding and are “not consistent with the President’s priorities.” This marks a potential shift from temporary furloughs to permanent layoffs, adding uncertainty for federal employees and the counties that partner with them.
What’s New this Time
- Potential layoffs: The Office of Management and Budget advised agencies to weigh RIFs where funding lapses, raising the prospect of DOGE-style cuts and long-term workforce losses. The President has publicly signaled support for permanent cuts during the shutdown.
- Appropriations impasse: The Senate failed to advance a short-term funding bill; talks between congressional leaders and the White House have stalled over disputes that include health care subsidies.
How Many Workers are Affected in Illinois?
Estimates vary by source and methodology, but all point to a significant footprint:
- 153,020 Illinois residents identified as federal employees in the 2024 American Community Survey (residence-based, includes USPS and some categories others exclude).
- 45,213 federal employees counted in a 2024 Congressional Research Service report (duty-station based; excludes USPS and parts of the legislative/judicial branches).
- 44,784 federal civilian employees in Illinois per OPM (as of Dec. 2024).
These figures include federal law enforcement and roughly 22,000 active-duty service members in Illinois. During a shutdown, essential personnel (for example, national defense, certain law enforcement) work without pay until appropriations resume; many non-essential staff are furloughed.
Service Impacts at a Glance
- Social Security and Medicare/Medicaid: Benefit payments continue (mandatory spending), but some customer service functions pause (for example, benefit verifications, FOIA requests, replacement Medicare cards). SSA plans to keep about 45,000 employees working and furlough about 6,200.
- Veterans: VA health care and benefits continue, but regional benefit offices close; outreach, career counseling, and some services scale back. National cemetery operations continue for burials, but headstones and routine maintenance may be delayed.
- Mail: USPS operates normally (independent of annual appropriations).
- Air travel: TSA officers and air traffic controlle s must work without pay. Past shutdowns saw staffing strains leading to longer lines and delays, with ripple effects to regional airports.
- National parks and public lands: Closures or skeleton crews reduce access, tourism, and on-site safety services; counties can face increased public safety and search-and-rescue burdens.
- USDA:
- Rural Development: New loans, grants, and guarantees suspend; most state/field staff are furloughed. Expect delays for closings and approvals; limited servicing of existing portfolios continues.
- FSA/NRCS: Pauses hinder crop insurance assistance, disaster programs, and conservation planning.
- SNAP: Operations continue using carryover and contingency funds through October 2025; new funds are not accessible during the lapse.
- WIC: As a discretionary program, benefits rely on limited federal contingency dollars and then state/local backstops; some clinics may face interruption.
- HHS: Head Start grantees with October 1 start dates (serving roughly 7,500 children) are immediately at risk without bridge funding. Certain child-welfare titles (for example, Title IV-B) tied to reauthorization cannot issue first-quarter payments. TANF reauthorization lapsed; states may rely on unspent funds/MOE dollars temporarily.
- HUD: CDBG/HOME generally retain advance funding, but processing slows. Section 8 vouchers prioritize existing commitments; FHA processing narrows.
- DHS/DOJ: Public safety operations continue, but grants and technical assistance pause; staff to support compliance and applications are largely unavailable. CISA may furlough a substantial portion of staff, reducing cybersecurity support. FEMA’s Disaster Relief Fund activities continue.
- USDOT: FAA functions outside safety/ATC scale back; airports face staffing gaps at security checkpoints if TSA absenteeism rises.
- EPA: SRF and brownfields grants halt; many inspections pause.
What Illinois Leaders are Saying
Illinois’ congressional delegation is split over tactics and blame, but both parties acknowledge the harm to residents and local governments when shutdowns drag on. Members underscore risks to working families if ACA premium tax credits lapse, and warn that prolonged shutdowns compound delays in airports, parks, grants, and reimbursements.
Why Counties are Concerned
Counties generate over two-thirds of their own revenue yet rely on roughly $62 billion in federal intergovernmental revenues to deliver core services. A prolonged shutdown jeopardizes grant cash flow and project timelines, on-the-ground technical assistance from federal partners, and contractor payments tied to federal approvals or reimbursements.
What Counties Can Do Now
- Communicate impacts to congressional offices—especially on time-sensitive grants, airport operations, and human services.
- Stabilize critical services: Identify local bridge funding or contingency plans for programs like WIC and Head Start where feasible.
- Plan for workforce strain: Track furloughs, delayed reimbursements, and county cost exposures.
- Coordinate with airports, transit agencies, and regional partners on travel disruptions and public messaging.
ISACo will continue to track developments and share information to help counties navigate service continuity, finance, and workforce implications during the shutdown.