On Wednesday, October 1, 2025, the Full-Year Continuing Appropriations and Extensions Act of 2025 expired, ending funding for all discretionary programs, and effectively sending the federal government into a shutdown. The Indian Health Service, which is funded by Congress through the annual appropriations process, received advance appropriations for Fiscal Year 2026, which means the IHS will continue to operate and receive funding.
This federal government shutdown is the first shutdown in nearly seven years and the first time the Indian Health Service has had advance appropriations during a shutdown. Advance appropriations will allow the Indian Health Service to continue normal operations for clinical services. This is critical to maintain the life-saving and essential direct care services provided by the Indian Health Service every day.
It is important to note that although Congress has provided advance appropriations for most functions at the Indian Health Service, there are a few accounts at the IHS that do not receive funding through advance appropriations. These include facilities construction, sanitation facilities construction, Contract Support Costs and 105(l) leases, the Indian Health Care Improvement Act Fund, and Electronic Health Records line item. While those line items are not funded through advance appropriations, the Indian Health Service has announced a total of 14,801 (100%) IHS staff will be exempt and paid through advance appropriations, multi-year, or supplemental appropriations, third-party collections, or carryover balances.
All other operating divisions at the Department of Health and Human Services (HHS) will continue any exempt or excepted activities through the duration of the shutdown. This includes activities authorized by law, activities authorized by necessary implication, and activities necessary to protect the safety of human life and to protect Federal property. HHS has published a full contingency plan on the official website and outlines which employees are expected to be furloughed starting October 1, 2025. The HHS contingency plan expects approximately 59% of HHS employees will be retained and 41% will be furloughed. Commissioned Corps Officers are an excepted class of employees and will remain at their posts.
The expiration of the FY25 Continuing Resolution also marks the expiration of funding for the Special Diabetes Program for Indians. As of today, the Indian Health Service will utilize remaining unobligated balances to keep the program funded for as long as possible. The National Indian Health Board will work with Congressional partners to ensure SDPI is reauthorized in any passed appropriation legislation to end the shutdown. New authorizing legislation was introduced last month.
As of today, October 1, 2025, there is no clear path out of the federal government shutdown. The Senate will continue to vote on the House passed Continuing Resolution, which provides funding at the FY 2025 level through November 21, 2025, including an extension of SDPI. The Senate is expected to continue voting through the weekend. The House of Representatives is not expected to return to Washington until next week. The National Indian Health Board continues to monitor the situation closely and will advocate for Indian health needs during this critical time.
Why Does This Matter?
A full government shutdown will disrupt operations and funds for hundreds of programs across Indian Country, and result in failure to uphold the federal government’s Trust and Treaty Obligations. Tribes have long advocated for permanent advance appropriations and mandatory appropriations at the Indian Health Service, Bureau of Indian Affairs, and Bureau of Indian Education. A government shutdown highlights the critical and life-saving need for permanent, reliable funding for Indian Country. During this shutdown, NIHB is asking you to document and share any success stories from having advance appropriations at the Indian Health Service. You can share these stories at [email protected].
