The U.S. Government Has Shut Down: Here’s What Public Companies Should be Thinking About

The U.S. federal government officially shut down on October 1, 2025, as lawmakers failed to reach an agreement on federal spending. Many government workers will be on furlough for so long as the shutdown continues, which will lead to a significant reduction in government activity. Here’s what public companies should know:

Limited Operations at the SEC

While the government is shut down, the operations of the SEC will be extremely limited. Here are a few things to keep in mind:

• EDGAR will continue to accept registration statements and other filings
• Filing deadlines under the federal securities laws will continue to apply and days during the shutdown will continue to count as “business days”
• The SEC will not be able to declare registration statements or post-effective amendments effective (in some cases it may be possible to file a new registration statement without the delaying amendment and automatically go effective within 20 days)
• Non-WKSIs with already-effective shelf registration statements may proceed with offerings through prospectus supplements
• WKSIs may proceed via prospectus supplements or post-effective amendments, if needed
• The SEC will not review or comment on filings
• The SEC will not respond to no action letters (including for shareholder proposals) and will not issue interpretive advice
• Questions relating to fee calculations and emergency filing relief should be directed to CFEmergency@sec.gov or IMEmergency@sec.gov, as appropriate

The SEC Division of Corporation Finance has also published guidance on SEC activities during the shutdown.

Strategic Communication During Uncertainty

During government shutdowns, maintaining transparent communication with stakeholders becomes crucial. Investors, customers, and partners will want to understand how the shutdown might affect a company’s business operations and financial performance.

Companies should consider developing a communication strategy that addresses:

• Potential impacts of the shutdown on current quarter earnings
• Delays in regulatory licensing, permits, inspections, communications and other approvals
• Supply chain disruptions and risk mitigation efforts
• Contingency plans for extended shutdowns

Other Considerations

While most government shutdowns resolve within days or weeks, companies should prepare for longer-term scenarios.

Shutdowns can increase uncertainty in markets. In this light, companies should proceed with caution when providing any forward-looking guidance and ensure they are basing any such guidance on realistic assumptions.

Companies should evaluate the potential impact of the shutdown on their cash flows and business operations, particularly if the company depends on government payments or regulatory approvals for revenue recognition or operations.

Companies should also ensure their disclosure committees are aware of potential shutdown impacts.

Takeaways

Public companies should evaluate and understand which critical functions of their business depend on the federal government, consider potential delays, maintain robust disclosure and communication strategies, and ensure contingency planning is in place.