How East Lansing Could Be Impacted By the Federal Government Shutdown and Michigan Missing the Deadline to Pass a State Budget

Michigan lawmakers narrowly came to a temporary agreement to hold off a state government shutdown Tuesday night, just as the federal government entered into shutdown for the first time in six years.

About 750,000 federal employees could be furloughed each day the federal government remains in shutdown, the Congressional Budget Office estimates, and delays in government services are expected.

Michigan has about 30,000 federal civilian employees, more than 5,000 of which reside in the state’s 7th Congressional District, which includes East Lansing, according to data from the Congressional Research Service.

During a federal government shutdown, non-essential federal agencies and services pause operations as hundreds of thousands of employees could be placed on furlough, without pay and without the guarantee that their jobs will remain available when the shutdown ends.

However, employees who are classified as essential, such as airport employees like TSA officers and border officers, are expected to continue work without pay. Asking airport employees to work while their pay is delayed until after the shutdown ends is expected to lead to staffing issues and delays for people traveling, as was the case the last time the federal government shutdown during President Donald Trump’s first administration. That shutdown lasted 35 days, the longest in U.S. history.

Active-duty service members and the National Guard are also deemed essential workers and will be expected to continue their duties without pay until the government shutdown is over.

For the more than 700 veterans who reside in East Lansing, according to U.S. Census Bureau data from 2023, medical care should not be impacted as Veteran Affairs medical centers will remain open, according to the U.S. Department of Veteran Affairs website. The department adds that VA benefits will continue, as well as caregiver support, suicide prevention programs and homeless services. However, several other services are being impacted by the shutdown, such as career counseling and the department is ceasing grounds maintenance and placement of permanent headstones in VA cemeteries.

As the Social Security Office anticipates furloughing around 6,000 of its more than 51,000 employees, it stated in its contingency plan published last week that local offices will remain open and beneficiaries will still receive benefits. The administration has added that workers may not be able to assist with all service requests until “the federal government is operating normally.”

Receiving and sending mail through the U.S. Postal Service will not be impeded during the government shutdown as USPS is generally not funded through tax dollars, USPS reminded customers in a statement last week ahead of the shutdown.

The federal government entered shutdown after midnight Tuesday, Sept. 30 as the Republican majority U.S. House and Senate needed Democrat lawmaker support on congressional spending bills, while Democrat lawmakers held firm that Republicans needed to vote to extend health care subsidies under the Affordable Care Act.

When speaking with members of the media in the Oval Office Tuesday, Trump said Democrats should do what they can to help prevent a government shutdown.

“We can do things during the shutdown that are irreversible, that are bad for them and irreversible,” Trump said Tuesday. “Like cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”

Like federal lawmakers, Michigan state lawmakers have reached a deadlock between Republicans and Democrats on determining spending plans. 

In Michigan, the Democrat-led state Senate and Republican-led state House after months of dogged infighting were not able to come to an agreement on the next state budget in time for the new fiscal year, which began Wednesday. In order to prevent a state government shutdown, of which the effect on residents would have been compounded by a federal government shutdown, the legislature passed a temporary continuation of the state budget until Oct. 8.

Michigan lawmakers missed their non-constitutionally mandated deadline to pass a school budget budget on July 1, which would have allowed schools to have an idea of what to plan for in their own budgets.

“School leaders are in a tricky situation,” State Superintendent Dr. Michael Rice said in a news release back in August. “For many years, the state legislature would regularly complete its budget work in September, but differences among the budgets of the governor, House, and Senate were minimal. While budgets were finalized after school began, district leaders knew roughly what to expect…The same is not true today.”

Staffing and allocating funds for buses and school activities presented challenges for schools all over Michigan this summer, and districts have been making decisions on whether to continue providing free school lunches and breakfasts after two years of school meals in Michigan were paid for through the state budget.

East Lansing Public Schools currently has enough funding saved to continue providing students free school lunches and breakfasts, the district said in an emailed notice to the school community last week, before the state budget deadline was missed. Some school districts in Michigan discontinued free school meals ahead of Wednesday, but with state lawmakers passing a stop gap, ELPS said families in the district will receive at least a month’s notice of free school meals ending, so families can make other plans.

A government shutdown could impact federal funding for higher education institutions like Michigan State University, the main economic driver in East Lansing. The university reports it has about a $3.4 billion annual economic impact in Ingham County, with school employees contributing more than $7 million in annual income tax revenue.

University Spokeswoman Amber McCann told ELi that the university is urging decision-makers on the federal level to come to an agreement to fund critical programs and research, including the projects MSU researchers are working on.

“…the impact to higher education largely depends on the length of the federal government shutdown,” McCann said. “If the federal budget impasse is resolved relatively soon, we anticipate minimal impact to the university. A longer shutdown has the potential to negatively impact valuable research, financial aid to students, and our international student community.”

The title to this article was updated.