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Vermont officials warn of economic blowback if government shutdown persists

The dome of the U.S. Capitol is seen from a skylight window, the lighting is dark and moody.
Tyrone Turner
/
WAMU
A photo of the U.S. Capitol from inside the visitors center on the eve of the federal government shutdown on Tuesday, Sept. 30, 2025. This is the first federal government shutdown since 2018.

Vermont officials say they don't expect the federal government shutdown will have an immediate impact on state services.

But they caution a prolonged shutdown could hurt Vermont's economy.

Adam Greshin, commissioner of the Department of Finance and Management, said state agencies were instructed to draw down as much federal funding as possible in advance of the shutdown.

He said they did something similar during the last shutdown in 2018.

"I don't think you will see anything different in state government services or delivery, but over time you will start to see differences as programs that have additional funds from last year run out," Greshin said.

Greshin said it's difficult to evaluate how a shutdown will affect individual departments in Vermont until federal agencies announce their own contingency plans.

According to U.S. Sen. Peter Welch’s office, people who get food assistance through the federal SNAP program will receive their benefits for October, but if the shutdown persists, their November benefits could be affected. The release of WIC benefits for women with young children is dependent on the state, Welch’s office said.

More from NPR: When will the government reopen? Here's how long past shutdowns lasted

Vermont had 3,368 federal civilian workers as of 2024, according to federal data, but that tally excludes certain departments, including postal workers. Those deemed “essential” will continue working without pay.

The state labor department on Wednesday said federal employees furloughed in Vermont can apply for state unemployment benefits.

“The Department recognizes that a federal shutdown can cause uncertainty and stress for many Vermonters employed by the federal government,” said Department of Labor Commissioner Kendal Smith. “Our goal is to ensure that those who have been impacted understand their options, know what documentation will be required, and feel prepared to access unemployment benefits if eligible.”

The workers would have to pay back the money if Congress approves back pay at the end of the shutdown.

Bob Kinzel has been covering the Vermont Statehouse since 1981 — longer than any continuously serving member of the Legislature. With his wealth of institutional knowledge, he answers your questions on our series, "Ask Bob."

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