Federal shutdown forces county to weigh pausing federally funded projects, staff recommends mid-November notice window

Board of Clallam County Commissioners ยท October 27, 2025

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Summary

County grant staff warned commissioners that the federal government shutdown has paused direct grant reimbursement systems and poses cash-flow risks for county partners and subawardees.

County grant staff briefed the board on the local effects of a federal government shutdown, telling commissioners that several direct federal programsincluding EDA and RECOMPETE-funded workhave paused reimbursement systems and that the county and many partners face cash-flow risk.

Staff said most county grants are state flow-through awards and are therefore less immediately affected, but direct federal grants and some partners' subawards have seen systems and websites go offline; staff said EDA went dark in August and has not reopened. As a result, partners that rely on federal reimbursements are assessing how long they can carry payroll and whether to furlough or pause work.

Program staff presented exposure figures: roughly $118,000 in obligations across the program (including salaries and indirects). They outlined mitigation options: moving the county analyst's salary off the grant to reduce exposure to about $81,000, and excluding indirects to reduce exposure further to around $60,000; staff estimated a current program burn rate of approximately $23,000 per pay period ($15,000 excluding indirects).

Staff proposed a coordinated mid-November pause date if federal reimbursements remain suspended, aligning with coalition meetings, payroll cycles and union-notice requirements. Commissioners and staff discussed doing additional touchpoints with HR and the coalition (Nov. 6 was cited as a major stakeholder meeting) and exploring internal county reassignments to retain skilled staff during any pause.

No formal board vote was recorded. Staff said they will return with HR-consultation results and a plan for notifications if pause decisions are required.