Day 23 Shutdown Update

The shutdown has now entered Day 23, officially becoming one of the longest government funding lapses in U.S. history. What began as a stoppage of new appropriations has deepened into a systemic strain: critical agencies are still running on carryover funds, contingency staffing, and increasingly brittle infrastructure.

This week’s updates illustrate the widening cracks—financial, operational, and procedural—that will define how long it takes for regulatory systems to recover once the government reopens.

FDA: Payroll Glitches and the Human Cost of Continuity

Even “exempt” employees—the small group authorized to continue essential work during the lapse—are beginning to feel the disruption. A payroll system error delayed timecard processing and paycheck issuance for several FDA staff, creating a ripple effect in morale and operational capacity.
(Federal News Network, Oct 21, 2025)

While FDA’s official position remains unchanged—active review work continues only for pre-funded user-fee submissions and critical safety activities—this internal lapse underscores the fragility of “essential” operations. Even minor administrative interruptions now risk compounding internal backlogs.

Key takeaways for industry:

• Expect further slowdowns in correspondence for user-fee-funded submissions as internal coordination falters.
• Budget or contract actions awaiting fiscal-year approval are effectively frozen until appropriations resume.
• Staff fatigue and attrition could lead to uneven resumption of reviews post-shutdown.

USDA: Partial Reopenings, Uneven Capacity

In a rare exception to the general freeze, the U.S. Department of Agriculture reopened about 2,100 field offices this week with minimal staffing to help farmers access roughly $3 billion in aid.
(Federal News Network, Oct 22, 2025)

While this partial reopening signals flexibility under fiscal constraints, it highlights the uneven nature of essential-function classification: aid processing resumes, but regulatory oversight—including APHIS import/export permitting, FSIS inspection documentation, and labeling review—remains on hold.

For regulated stakeholders, that means continued uncertainty in:

• Permit renewals for animal or plant imports.
• Organic certification reviews, particularly for renewals requiring on-site verification.
• Trade documentation, as CBP and USDA continue to coordinate under limited staff authorizations.

Judiciary Furloughs: Broader Institutional Strain

For the first time in this shutdown, the federal judiciary began furloughing employees, marking an unprecedented extension of the funding lapse into Article III operations.
(Reuters, Oct 20, 2025)

For regulated industries, the consequences are indirect but serious: pending administrative appeals, injunctions, and Freedom of Information Act litigation are all being delayed, meaning fewer opportunities to clarify disputes or challenge agency actions in real time.

The Hidden Layer: Frozen Registrations and Expiring Access

Facility and establishment registration renewals continue to stall across both FDA and USDA systems. Submission portals remain operational, but there is no active review or validation, and some automated notices are failing to send. Entities that rely on active registration status—particularly for imports or contract manufacturing—face a growing compliance risk if renewals expire before review resumes.

Action items for clients:

• Retain proof of renewal submissions, including timestamps and receipts.
• Notify import brokers and private-label partners of potential status discrepancies.
• Prepare for re-registration or amendment filings once systems reactivate.

Outlook: Managing the Slow Breakdown

By Day 23, the narrative has shifted from interruption to endurance. Agencies can maintain “essential” operations, but not indefinitely—and every internal glitch or furlough magnifies the fragility of those systems.

For regulated entities, the practical implications are now clear:

• Plan for delay not just in filings and inspections, but in the reactivation of administrative and financial systems.
• Document compliance diligence throughout the shutdown for later reference.
• Expect triage—when appropriations return, agencies will prioritize critical safety and enforcement functions before administrative renewals.

The lesson of this shutdown is no longer about time—it’s about resilience. The machinery of regulation can bend for weeks, but not without lasting distortion.

FDA Atty will continue tracking federal operational updates, registration reinstatements, and litigation implications as the shutdown continues.