Original broadcast: 10/26/25
Presented by Maximus
In this episode of Fed Gov Today with Francis Rose, Former IRS Commissioner and OMB Controller Danny Werfel explains what financial managers can and cannot do when appropriations lapse. He details the limited options available, such as using prior-year, multi-year, or “no-year” funds, as well as fee-funded or franchise activities. Danny cautions that reprogramming money across purposes is tightly restricted by law, emphasizing that shutdowns are messy, evolving situations where agencies must constantly reassess risks and update plans to protect people and property.
Next, Ron Leidner of Maximus joins to discuss how collaboration between business and IT leaders can move the contracting and modernization needle. He stresses that agencies must build “business intelligence before artificial intelligence” and ensure every new technology investment has a clear business purpose. Ron describes a shared responsibility model between IT and business leaders—each fully accountable for outcomes—and encourages a shift from large, slow modernization projects to smaller, value-driven steps that deliver results with “velocity.”
Finally, Soraya Correa, former DHS Chief Procurement Officer, shares lessons on rebuilding government-vendor relationships after a shutdown. She recalls how shutdowns impact morale, delay contracts, and strain small businesses. Soraya advises leaders to communicate early, prioritize essential contracts, and document lessons learned to prepare for the future.
Danny Werfel, Executive in Residence at Johns Hopkins and former IRS Commissioner and OMB Controller, joins Fed Gov Today with Francis Rose to explain how financial managers navigate a government shutdown. He notes that once appropriations lapse, agencies are highly restricted—no new contracts or grants can be created. Still, some funds remain available, including prior-year, multi-year, or “no-year” money, as well as fee-funded and franchise funds that operate outside annual appropriations.
Danny explains that reprogramming money between accounts is possible but tightly limited. It must have a clear legal basis and serve the same original purpose; using technology funds for payroll, for instance, could violate the Anti-Deficiency Act. He
He also reminds listeners that every federal dollar must be both authorized and appropriated—two laws that set the rules for how much, how long, and for what purpose money can be spent.
Recalling his experience during the 2013 shutdown at the IRS, Danny says agencies must continually reassess risks and adjust who remains working to protect life and property. He concludes that shutdowns are messy, evolving, and best avoided—but they always provide valuable lessons for the future.
Key Takeaways:
Ron Leidner, Vice President of Client Engagement at Maximus and former Senior Advisor at the IRS, joins Fed Gov Today with Francis Rose to discuss how collaboration between business and IT leaders can improve federal operations, especially during challenging times like a government shutdown. He says agencies must first build business intelligence before artificial intelligence, stressing that technology investments only succeed when they serve a clear business purpose and deliver measurable value for taxpayers.
Ron introduces the idea of a “business-led, collaborative solutioning model”—a framework where IT and business leaders work
He also encourages agencies to shift away from slow, large-scale “big bang” modernization efforts. Instead, Ron promotes incremental transformation—delivering small, high-impact improvements quickly and building on them over time. This approach, he argues, drives efficiency, builds trust, and keeps teams aligned on mission value.
Key Takeaways:
Soraya Correa, President and CEO of National Industries for the Blind and former Chief Procurement Officer at the Department of Homeland Security, joins Fed Gov Today with Francis Rose to share lessons on rebuilding the government–vendor relationship after a shutdown. Drawing from her experience leading DHS through the 2013 shutdown, she describes how both government and industry suffer—employees face financial strain, contractors lose workers, and small businesses struggle to stay afloat.
Soraya explains that when operations resume, agencies face delays as vendors rehire, re-clear, and retrain staff. Leaders must focus on reorienting teams, rebuilding morale, and setting clear priorities for restarting work. She emphasizes the importance of
From an acquisition standpoint, she urges leaders to reach out to vendors quickly as stop-work orders lift. Open communication helps vendors plan their restart, manage additional costs, and reallocate resources to meet mission needs. Soraya also stresses collaboration across leadership—finance, legal, and IT—to ensure a smooth and lawful reopening.
She advises documenting lessons learned after each shutdown to improve future responses and reduce disruption. Though shutdowns are painful, she says, they offer valuable opportunities to strengthen relationships and preparedness.
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