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

October 3, 2025

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: 


  • Disruption to research continuity: The National Institutes of Health, National Science Foundation, and others have suspended operations affecting grant review and ongoing research funding. New grant applications will not be reviewed, and existing research projects may face interruptions in funding.
  • 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. 


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