Federal Government Shutdown: Impact on Psychology and What You Need to Know 

Updated: November 13, 2025

Update: Federal Government Shutdown Ends

On November 12, the House approved H.R. 5371—the continuing resolution (CR) and minibus appropriations package—by a vote of 222–209, with six Democrats supporting and two Republicans opposing. The debate was limited to one hour, with no amendments permitted. President Trump signed the measure into law late Wednesday night, ending the 43-day shutdown – the longest government shutdown in U.S. history. 


The Senate passed its version two days earlier by a vote of 60–40. The legislation includes full year funding for Agriculture-FDA, the Legislative Branch, and Military Construction-VA, and funding for the remainder of the federal government through January 30, 2026. 


The compromise also secures a promise from the administration to reinstate federal employees dismissed at the onset of the shutdown and commits to a December floor vote on extending expiring Affordable Care Act tax credits. The bill includes: 


  • $203 million for enhanced member security initiatives 
  • $153 billion in discretionary funding for VA and defense programs
  • $263.7 billion in mandatory funding for veterans’ benefits
  • Extension of major agricultural programs through FY 2026
  • $4.09 billion for rural development initiatives 


The Senate will reconvene on Tuesday, November 18, to begin work on a second appropriations package, expected to include funding for Defense, Labor-HHS-Education, and Transportation-HUD. Potential additions include Commerce-Justice-Science (CJS) and Interior-Environment, though disputes over the FBI headquarters and environmental funding—particularly objections from Sen. John Kennedy (R-LA)—may delay their inclusion.

Background

On October 1, 2025, the federal government shut down for the first time since December 2018 after lawmakers failed to reach agreement on extending federal funding by the September 30 deadline. The shutdown immediately halted most "nonessential" operations across federal agencies critical to psychology's research, education, and practice infrastructure.

APA/APASI Assessment

APA and APA Services, Inc. are monitoring the immediate and cascading effects of the shutdown on psychological science, practice, and workforce development. Our assessment identifies several key areas of concern: 


Impacts on NIH and Psychological Research:

The U.S. Department of Health and Human Services (HHS), the parent agency of the National Institutes of Health (NIH), is operating under its FY 2026 contingency staffing plan. As referenced in plan "activities-not-continue" include the following relevant programs:

  • New Grants and Reviews Halted: The NIH and the National Science Foundation (NSF) have stopped reviewing grant proposals and are not issuing new awards.
  • Clinical Trials Paused: NIH has stopped admitting most new patients into clinical trials.
  • Internal Research Stopped: Basic research conducted by scientists employed directly by NIH has been halted.
  • No Communication: The majority of federal staff at NIH, NSF, and other agencies are furloughed. Federal law prohibits them from working, meaning researchers and grant applicants cannot communicate with their program officers or federal collaborators.
  • Peer Review Canceled: All study sections, peer review panels, and site visits are canceled or postponed.

 

Impacts on Federal Aid, Food Security, and Mental Health:

As highlighted in late October 2025, the shutdown is now threatening basic assistance programs, creating a significant source of stress and uncertainty for millions of Americans.

  • SNAP Benefits Halted: The U.S. Department of Agriculture (USDA) has announced that due to the funding lapse, it will partially suspend November benefits for the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. This will reduce food aid for approximately 42 million Americans.
  • WIC Funding at Risk: Funding for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which provides nutritional aid for new mothers and young children, is also expected to run out in early November.
  • Psychological Impact: The APA and other mental health organizations have previously noted the direct link between financial insecurity, food insecurity, and negative mental health outcomes. The sudden loss of food and basic assistance for millions of vulnerable families, including children, is a major national stressor, increasing risks of anxiety, depression, and toxic stress.
  • Community Impact: Food banks and pantries are reporting a massive surge in demand as families seek to fill the gap, creating a secondary crisis for community support systems.


Impacts on Mental Health Services and Access to Care:

The shutdown adds pressure to a system already facing proposed budget cuts to mental health services.

  • Veterans Affairs (VA): GI Bill benefit payments are expected to continue, as they are funded through advance appropriations. However, support services, including the GI Bill hotline, are suspended.
  • Medicare: Claims processing is expected to continue, but the Centers for Medicare & Medicaid Services (CMS) has warned of potential delays.


Effects on educational and training programs:

Grantees who received federal funding for psychology workforce training through the Health Resources and Services Administration (HRSA) and the Substance Abuse and Mental Health Services Administration prior to the shutdown can continue accessing their awards. For those considering applying for funding, the Grants.gov system will continue accepting applications and store them until normal operations resume.


Operational challenges in practice settings:

Medicare and Medicaid benefits continue, but staff furloughs will delay customer service and administrative functions. The most significant impact for psychologists will be the implementation of the in-person requirement for telehealth. Both Republican and Democratic versions of continuing resolutions included temporary extensions of the exemption for the requirement. When neither package succeeded, the current exemption expired but can be restored retroactively in subsequent legislation. (See additional details on Department of Health and Human Services contingency plans.) Within the Department of Veterans Affairs, the Veterans Crisis Line and mental health services should continue uninterrupted, but programs such as the Staff Sergeant Parker Fox Suicide Prevention Grants and Rural Access Network for Growth Enhancement (RANGE) programs require the reauthorization included in the continuing resolution. Health Care for Homeless Veterans (HCVC) program might also be impacted.


Behavioral health workforce implications:

HRSA-run programs addressing maternal health, health workforce development, and behavioral health will likely operate with limited staff. The shutdown will disproportionately impact under-resourced communities including rural populations, as delays in support services can exacerbate access to care challenges.

What APA/APASI Is Doing

APA will continue to advocate for the federal government's reopening to ensure timely resumption of peer review processes, sustained funding opportunities for psychological research, and stability for educational and training experiences serving graduate students and early career psychologists. We are working to restore prior Medicare telehealth coverage rules that expired as a result of the shutdown and seeking permanent repeal of the in-person visit requirement that creates barriers to accessible mental health care. 

Resources to Help You Navigate the Shutdown 

We will continue updating the Response Center as this situation evolves. We encourage members to bookmark this resource for the latest information on the shutdown, federal policy developments, and their implications for your work. 


Membership Support During Financial Hardship: We recognize that the shutdown may create financial strain for psychologists through furloughs, interrupted research funding, or reduced practice revenue due to telehealth restrictions or clients discontinuing services due to their own financial circumstances changing. If you are experiencing financial hardship related to the shutdown or other circumstances and need assistance with your membership dues, please contact Member Services at 1-800-374-2721 or 202-336-5580. Members approved for hardship relief will retain full access to all APA member benefits and resources, ensuring you maintain connection to the professional support and information you need during this challenging period. 


Managing Uncertainty: Navigating times of uncertainty can be challenging. These resources can help you manage your stress and anxiety. 


Professional Resilience in Changing Times: This free webinar series offers strategies for psychologists facing career shifts, employment disruptions, and supporting clients through job uncertainty. 


Explore these career resources for psychologists facing employment transition and personal career challenges while maintaining well-being and resilience.