President Wolford and Members of the Board,
As the situation regarding the US government shutdown has evolved today, IAFC staff has been extremely busy evaluating the impacts. Please see the attached memo, which is also reproduced below:
BOTTOM LINE UP FRONT (BLUF):
Today (01 OCT 2025), the federal Fiscal Year (FY) 2026 began. However, Congress has yet to pass any of the annual appropriations bills. An attempt to pass a continuing resolution to keep the federal government open until 21 NOV 2025 passed the House but did not pass the Senate. As such, effective immediately many federal programs are shut down.
Several federal programs that are essential to our members are deemed essential for protecting life and property will remain open/operational. For example, the U.S. Forest Service and Bureau of Land Management will have personnel active to fight wildland fires. Many of the Federal Emergency Management Agency (FEMA) staff will remain active. The federal FirstNet Authority also will remain operational, because it is not funded through annual appropriations. The World Trade Center Health program will operate using mandatory spending. The Pipeline and Hazardous Materials Safety Administration (PHMSA) will continue to do hazmat accident investigations and inspections.
However, many of the federal programs that our members depend on are expected to be shut down. For example, the National Fire Academy has been closed and the USFA 4th Annual Summit on Fire Prevention and Control scheduled for this weekend has been postponed (tentatively) until 19 NOV 2025. Many of the programs at the National Institute for Occupational Safety and Health, like the Firefighter Registry for Cancer and the Fire Fighter Fatality Investigation and Prevention Program are expected to be shut down. The Public Safety Officers’ Benefits Program should be able to accept applications, but the staff of the Office of Justice Programs is being reduced to a low level, so responses may be delayed.
The IAFC relies on several grants to provide funding for IAFC staff and General and Administrative cost reimbursement. While current federal policy provides for full reimbursement of expenses incurred during the government shutdown, the IAFC must absorb these expenses until federal reimbursement is received. The amount of expenses we must absorb, and the timeframe for IAFC to receive reimbursement are unknowns as the length of the shutdown is unknown. Below we have outlined in more detail the impact of the government shutdown on the IAFC and our members.
Unlike the shutdown in 2018-19, the IAFC net asset balance and cash liquidity is very strong. Based on current IAFC policy, we estimate that they IAFC can absorb the federal grant work expenses for four (4) months and still be compliant with the IAFC Financial Reserve Policy. However, I recommend that the IAFC Executive/Finance Committee meet within the next week to fully discuss the impact and potential scenarios.