AGC has called on Congress to quickly pass a clean continuing resolution to end the government shutdown. As the shutdown continues into its fourth week, contractors may start to experience impacts to their work. Here is what we at AGC of America expect:
Permitting
The good news in the permitting world is that for stormwater and many of the other major environmental permitting programs, states have assumed responsibility for administration. Except in areas where EPA is the permitting authority, contractors should still be able to work with their states to file notices of intent or notices of termination. For the limited areas where federal EPA is still handling the permits, the eNOI platform remains up at the time this article was written. We will continue to monitor the platform in case that changes.
Other programs that operate under a general permit should also experience minimal disruption during the shutdown. If there is any slowdown in permitting operations, it will likely occur in situations where projects are seeking or have individual permits that require extensive coordination between project proponents and federal agencies.
If you are experiencing permitting delays as a result of the shutdown, please reach out to Melinda Tomaino.
Rulemaking
The federal rulemaking process does not change because of the shutdown. However, staffing shortages and a lack of operational support government-wide means that many rulemaking efforts will be halted during the shutdown, while the most important among them will continue to trudge along. The Federal Register will continue to publish a daily, albeit small-scale, version of the government’s daily journal and regulations.gov remains open for people to submit comments are existing rules.
To read about impacts at the Occupational Safety and Health Administration, click here.
Existing Projects
Be sure to check out AGC’s Guide: What To Know in the Event of a Government Shutdown. However, as AGC has previously reported, the administration has used the shutdown to apply political pressure in certain parts of the country, on specific projects, that otherwise might not be impacted by a shutdown.
Impact on highway and transportation contractors. Highway contractors should mostly be unaffected because programs funded by the Infrastructure Investment and Jobs Act (IIJA) will continue uninterrupted. This includes programs funded by the Highway Trust Fund and advance appropriations for highways, airports, and transit.
Impact on direct federal contractors. For contractors performing direct federal work – such as with the U.S. Army Corps, Naval Facilities Engineering Command, or General Services Admin – the situation is more nuanced. Construction contracts already awarded on a fixed-price basis should be largely unaffected by the shutdown. However, for most cost-type contracts, time and materials contracts, IDIQ/MATOC/MACC contracts and those contracts that have yet to be awarded, the shutdown will likely suspend operations completely.
For more information on the shutdown or to explain what impacts the shutdown is having on you, contact Jordan Howard.