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Los Angeles County officials told the Board of Supervisors on Oct. 7 that a partial federal government shutdown that began Oct. 1 is already complicating reviews, grant drawdowns and federal payments and could force the county to draw on limited reserves for housing subsidies and other safety‑net programs if it lasts beyond October and into December.

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County leaders and department directors said some federally funded programs — including the Section 8 housing subsidy, CalFresh and CalWORKs food and cash aid, and certain hospital reimbursements — have funding assured only for a limited period and that a prolonged lapse would create cash‑flow problems, delayed grants and service interruptions. The county and departments urged residents and partner agencies to prepare for a range of scenarios and said they are working with state and federal counterparts to limit harm.

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Chief Executive Officer Fezia opened the board’s regular budget briefing by calling the partial shutdown “unusual” in its scope and uncertain in its duration, and said county offices and departments are preparing for multiple contingencies.

Angela Ovia, acting branch manager for legislative affairs, told the board, “the partial government shutdown began on October 1, so we are in day 7,” and summarized federal actions so far: essential federal payments such as Social Security and veterans benefits continue, but many federal reviews, grant processing and personnel support are paused.

Emilio Salas, executive director of the Los Angeles County Development Authority, described the potential immediate effect on rental subsidies: “we provide rental subsidies to approximately 30,000 households every single month and also issue those rental payments to approximately 10,000 property owners to the tune of nearly $50,000,000 every single month.” Salas said HUD told LACDA it had sufficient appropriations to continue payments into mid‑November, but that the authority has “only 1 month's reserves available for the section 8 program and we have less than 1 month available for our public housing programs.”

Michael Sylvester of the Department of Public Social Services said CalFresh (food) and CalWORKs (cash aid) have funding assured through October, while Medi‑Cal funding is assured through the end of the quarter in December. “If the shutdown continues, our beneficiaries will definitely be impacted starting November,” Sylvester said, and reminded the board that county programs serve large caseloads: about 1.6 million on CalFresh and 115,000 low‑income CalWORKs households.

County and health system leaders flagged hospital payment risks tied to federal Disproportionate Share Hospital (DSH) funding. Doctor Christina Galley said DSH cuts and shutdown‑related payment timing could create a cash‑flow crunch for hospitals beginning in late 2025 or early 2026 even if the revenue changes are later resolved retroactively.

Doctor Barbara Ferrer, Los Angeles County Public Health director, described public‑health impacts when federal surveillance and grant review staff are furloughed: national data feeds and interagency calls paused, significant staff furloughs at the U.S. Centers for Disease Control and Prevention and other federal agencies, and delays in certain grant drawdowns that require a federal review.

Directors cautioned that grant awards and invoices that need staff review may be delayed and that many community‑based providers depend on prompt payments. “We don't have reserves,” Ferrer said. “Because 60% of the federal funds are going out to community partners, there will be no payments for those services if the grant reviews and invoices are not processed.”

Board members and the CEO urged close, daily monitoring and requested direction to quantify the financial exposure and potential mitigation options. CEO Fezia said county staff already are preparing regular financial updates and would present more detailed, directional estimates in the coming week.

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Board members emphasized urgency and asked departments to continue public messaging that explains timelines and likely impacts so residents and community partners can prepare. The board did not adopt new policy at the Oct. 7 meeting but asked staff for follow‑up information on the scale and timing of likely disruptions and on state and philanthropic resources that could temporarily offset immediate community needs.