Federal government shutdown will have limited impact on Commerce

Agency is in a strong position at the beginning of the state budget cycle

The Washington State Department of Commerce is strongly positioned to sustain the federal government shutdown, which began today. The federal shutdown should not impact current Commerce funding, and it does not immediately affect staffing, programming (including contracts), or operations. The potential for greater impact depends on how long the shutdown lasts.

“Commerce remains dedicated to supporting our partners and ensuring service continuity during this federal shutdown,” said Commerce Director Joe Nguyễn. “Our communities can rely on us for excellent customer service and assistance regardless of the politics happening outside our state.”

Commerce is at the beginning of the state’s two-year budget, with the administrative rate set through June 30, 2027. All agency appropriations are backed by existing federal awards, and the shutdown is not expected to affect these awards.

The agency remains in close contact with staff in the Governor’s Office, the state Office of Financial Management, and federal partners. Additionally, Commerce leadership will hold frequent meetings to monitor the situation and a contingency plan is ready if the shutdown persists.

Commerce relies on both state and federal funds, with current operations supported by federal appropriations from fiscal years 2021-25. Of Commerce’s $9.2 billion budget, $1.8 billion — 19% — comes from federal dollars. The agency manages more than 2,800 active federal contracts. Various federal agencies, including the departments of Energy, Justice, Housing and Urban Development, Health and Human Services, the Environmental Protection Agency, the Small Business Administration, the U.S. Department of Commerce and the U.S. Treasury provide these funds.

The last federal shutdown began in December 2018 and lasted 34 days.

We will keep our stakeholders and grantees updated whenever we know more.