Public Assets Institute The federal government shutdown began on October 1st—the start of the new federal fiscal year—after existing funding expired and Congress failed to approve new funding.
Vermonters working for federal agencies, women and children receiving nutritional assistance, and Vermonters receiving enhanced premium tax credits to pay for healthcare coverage are all facing potential shutdown impacts on top of cuts to healthcare and food assistance as a result of the July 1st budget reconciliation bill.
We are now (17) days into this shutdown, and there’s currently no indication of when it may end. The longest federal shutdown in history was 34 days in 2018-19.
There have been a lot of changes to federal policy in recent months that are affecting Vermonters. Some have taken effect, some have been proposed and are under consideration, some have been implemented and then reversed, and some are working their way through court challenges. We will keep this page updated as much as possible as new changes happen.
Federal shutdown
The federal government shutdown began on October 1st, the start of the new federal fiscal year, after existing funding expired and Congress failed to approve new funding. Until funding is restored, many federal workers in the state are furloughed (put on temporary leave) or working without pay.
Federal workers in Vermont: 6,590
The Office of Management and Budget is trying to use the shutdown as an opportunity to lay off federal workers, targeting employees at the Departments of Health and Human Services, Homeland Security, Treasury, Education, Housing and Urban Development, Energy, Commerce, and the Environmental Protection Agency.
Vermonters working for federal agencies that are targeted for layoffs: 2,775
The shutdown also means that certain federal programs and functions that use discretionary dollars are currently paused until funding is restored. For example, National Parks will remain partially open to the public but mostly unstaffed, Head Start grants (which help to provide early childhood education, health and nutrition) may be delayed for certain grantees, and new loans for farmers will be paused. As the shutdown continues, more programs could be impacted, including nutritional supports for women and children.
Women and children in Vermont at risk of temporarily losing nutritional assistance: 10,366 total, including 1,810 infants
In addition to the many grants already frozen or cancelled before the shutdown, the administration is permanently cutting grant funding during the shutdown for projects that expand renewable energy and address climate change, including two projects in Vermont.
Healthcare premium assistance
One of the main issues at stake is an extension of the Affordable Care Act (ACA) enhanced premium tax credits, which increase subsidies for ACA Marketplace health insurance and expand eligibility for subsidies to those making over 400 percent of the federal poverty level ($62,600 for an individual in 2025). These enhanced subsidies expire at the end of the calendar year, after which subsidies will return to their pre-COVID levels unless Congress extends them.
Vermonters receiving enhanced premium tax credits for healthcare in 2025: 30,280
Total enhanced credits to Vermonters: $65 million
10.16.2025. Public Assets Institute, Montpelier, www.publicassets.org
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