The federal government shutdown has begun, and with it comes uncertainty and questions about what lies ahead. On Fed Gov Today with Francis Rose, former senior officials and federal experts share their perspectives on the real impacts—on employees, agencies, contractors, and the American public—and on how leaders can navigate both the immediate crisis and its long-term consequences.
The Human Toll
For Former Undersecretary of Defense, Comptroller Mike McCord, the first priority is recognizing the burden placed on federal workers. “I want to start by communicating my support and sympathy to the civil servants who are impacted by this through no fault of their own,” McCord says. The shutdown, he explains, delivers not only financial stress but also an implicit message that the work employees do is undervalued. “The message they’re receiving implicitly is that either the importance of their work or the fact that they have bills to pay—neither of those things motivates their leaders to get funding done.”
That harm extends to taxpayers as well. “They’re not getting the services they pay taxes for already during the shutdown,” McCord notes. “And there’s waste, inefficiency, work piling up.”
A Different Kind of Shutdown
This particular lapse in funding looks and feels different than previous shutdowns. Robert Shea, CEO of Gov Navigators and a former senior OMB official, points out that OMB’s posture has shifted dramatically. “They’ve been slow to apportion appropriated funds, even before we were talking about a shutdown,” he says. Unlike in past episodes, OMB has not posted government-wide contingency plans, leaving agencies to devise their own.
Even more concerning, Shea says, are signals that the shutdown could bring lasting workforce reductions. “OMB warned agencies that there may be reductions in force, termination of individuals whose programs don’t fit the President’s priorities,” he explains. “Those are very new.” With agencies already operating at reduced staffing levels since 2017, further cuts could make it “extremely difficult to rebuild those workforces.”
Leadership and Communication
Amid this uncertainty, communication from agency leaders becomes essential. McCord stresses that leaders cannot assume employees understand shutdown rules, even if they’ve lived through one before. “Very few civilian leaders who are on the job today were in the same job 12 years ago. Many employees weren’t in government at all 12 years ago,” he says. “You certainly should not assume that people know how it works.”
To McCord, effective communication happens on three levels: written contingency plans, visible messages from agency heads, and consistent updates from senior leaders who remain on duty. On top of that, agencies must rely on official sources such as OPM for guidance on critical questions like health insurance coverage.
Leadership during a shutdown, however, goes beyond logistics. Jim Williams, former Acting Administrator of GSA, reminds leaders that their tone and example matter most. “In the face of withering criticism, you still have to deliver on the government’s mission,” he says. “There are people who count on the government to do that.”
Operational and Security Risks
While furloughs dominate the headlines, operational risks ripple far beyond personnel. Sonny Hashmi, Head of Global Public Sector at Unqork and former GSA FAS Commissioner, warns that agencies cannot treat this as business as usual. “Even in agencies and programs that are largely unaffected, they’re not performing all of the duties they typically would perform,” he says. Functions are limited to those deemed essential—protecting life, property, or national security.
That narrowing creates vulnerabilities, particularly in technology and cybersecurity. “Our enemies don’t sleep. Our adversaries are not on furlough,” Hashmi warns. While some cyber operations teams continue as essential staff, the broader disruptions to IT and procurement processes raise risks that adversaries may exploit.
Procurement itself faces an especially tough burden. Shutdowns hit just as the fiscal year closes—a period when acquisition shops are busiest. “All of that work typically gets paused,” Hashmi explains. “When you come back, that backlog has not gone away. Now you have to do all of that work and catch up.” Williams underscores the challenge, stressing the need for experienced acquisition professionals to restart contracts and manage contractors once funding returns.
What Happens After
When employees and contractors finally return to work, they face more than just a backlog. Morale and trust are often casualties of shutdowns. McCord recalls earlier episodes where workers compared treatment across agencies. “Questions will be asked… about any perceived discrepancies of fairness,” he says. “Why wasn’t I treated the way he was?”
Shea agrees, pointing out that even though furloughed employees now have a guarantee of back pay, the specter of permanent
terminations looms. “It’s not a great comfort just to know that they might get these benefits when, in fact, they might actually be terminated permanently,” he says.
Given the risks of repeated shutdowns, several guests argue for a structured review when agencies return. Williams calls for a formal assessment: “The idea of studying what happened, what should we have done differently to make this a little bit of a softer hit, would be time well spent.”
The Road Ahead
Shutdowns are not new, but the circumstances of 2025 make this one feel more destabilizing. Shrinking workforces, shifting OMB
policies, mounting cyber risks, and disrupted contractor relationships all add layers of complexity. Yet the path forward, the guests agree, lies in leadership, communication, and preparation.
As Hashmi reminds, even when funding stops, missions do not. “This is not business as usual,” he says. The challenge for federal leaders is to carry their agencies, their employees, and their missions through the turbulence—and to be ready for what comes next.
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