Day 2 Shutdown

As the federal government shutdown enters its second day, more clarity has emerged around the scope of disruptions across FDA, USDA, and import operations. While essential public health and safety functions continue, significant slowdowns and funding freezes are taking hold.

FDA

• No new user-fee submissions accepted: FDA has formally confirmed it cannot accept new drug, biologic, device, or other applications requiring fees during the lapse. Submissions already filed with fees paid may continue under carryover funding.
• Workforce retained: Approximately 86% of FDA employees remain on duty as exempt/excepted, largely tied to user-fee programs and life-safety functions.
• Imports continue under strain: Import entry review and “high-risk” inspections remain active, but slower throughput and potential backlogs are expected at ports. Routine inspections and longer-term policy work are paused.

USDA

• Payments frozen: Commodity, conservation, disaster, and other farm program payments are suspended until appropriations resume. This is already impacting agribusinesses relying on cash-flow support.
• Furlough scale: Reports confirm ~42,000 USDA staff (about half of the workforce) are furloughed, significantly curtailing agency activity.
• Animal welfare oversight suspended: Routine Animal Welfare Act inspections have stopped, pausing oversight of breeders, exhibitors, and related facilities.
• Essential inspections continue: FSIS food safety inspections (meat, poultry, eggs) remain operational, and APHIS continues fee-funded import/export services.

Imports & Trade

• CBP operations continue: Cargo processing and tariff collections remain in place as essential functions.
• FDA screening continues: FDA continues entry review and targeted import exams, but staffing reductions mean slower release times are likely.
• Cross-agency delays possible: Coordination with USDA APHIS and other partner agencies could add further delays for shipments requiring multiple clearances.

Key Takeaways

• Expect delays at ports and in regulatory submissions requiring fees.
• Agricultural businesses should plan for suspended USDA payments and reduced program support.
• Animal and biologics operators relying on VS permits or inspections should confirm status via APHIS eFile and anticipate slower turnaround.
• Routine compliance oversight may be temporarily reduced, but high-risk enforcement and safety-related activities continue.

We will continue to monitor and provide updates as the situation evolves.