North Dakota agencies say impact of federal shutdown minimal — for now

BISMARCK, N.D. (North Dakota Monitor) — No state employees who are federally funded will be furloughed or lose pay due to the federal government shutdown, according to the North Dakota Office of Management and Budget.

“We expect that interruptions in federal funds will be short term, and that they won’t significantly affect state cash flow,” Joe Morrissette, director of the Office of Management and Budget, said in a statement to the North Dakota Monitor.

Less than 10% of the state’s payroll is funded by federal dollars, Morrissette said. The two state agencies with the most federally-funded employees are the Department of Health and Human Services and Department of Environmental Quality.

Morrissette was in charge of the Office of Management and Budget during the 35-day federal government shutdown that started in December 2018. It was the longest in U.S. history.

“That one, too, even though it was longer, was really just viewed as an interruption in the flow of federal funds,” Morrissette said. “In the end, the state was made whole for everything.”

He said North Dakota is operating under the assumption that the same will be true for this year’s shutdown.

If the shutdown lasts longer than 35 days, the state may have to revisit its options, Morrissette said. This could mean reducing federally-funded services, or deciding to tap into more state money to sustain federal programs until the shutdown ends, he said.

Morrissette said OMB could draw funds from the Bank of North Dakota in the form of a short-term loan, though that’s never been done before. The Legislature could also consider calling a special session to access funding, he added.

Federal employees

North Dakota has more than 5,700 federal workers, according to federal workforce statistics.

Rep. Julie Fedorchak, R-N.D., said Thursday it’s her understanding that federal workers who are furloughed will receive back pay.

Fedorchak said she hopes the shutdown ends the next time the Senate votes on the issue, which could be Friday or Saturday. She added the House of Representatives is expected back in session on Monday.

SNAP, WIC and other health programs

Federal health care and social services provided through the state of North Dakota have not been interrupted by the federal government shutdown, according to the North Dakota Department of Health and Human Services.

“We’d like to let North Dakotans know that the federal government shutdown does not close state government,” Pat Traynor, Health and Human Services commissioner, said in a statement. “We will provide updates as more information becomes available, and we remain committed to our mission of helping North Dakotans live safe and healthy lives.”

Traynor said the state will continue administering programs including Medicaid, the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families, the Child Care Development Fund and the Special Supplemental Nutrition Program for Women, Infants and Children.

The North Dakota Department of Health and Human Services said it was too early to speculate how long it could sustain the programs without further funding from Congress.

Department of Environmental Quality

David Glatt, Department of Environmental Quality director, said the agency operates a number of federal programs, including those mandated by the Clean Water Act and Clean Air Act.

He said the Department of Environmental Quality’s federal programs use state general fund dollars to operate, which are then reimbursed by federal funding once it’s available.

“Congress has not passed a budget in a timely manner for many, many years,” Glatt said. “Once they pass a budget, it usually takes them a couple months to get the money to flow to the states.”

He said the agency has enough money to continue operating those programs for at least 60 days.

“Like everything else, we’ll just stay tuned,” he said. “Things change pretty quickly in D.C., but right now we’re sitting OK.”

Tribal services

All essential services provided to tribal communities by the federal government, including those provided by the Bureau of Indian Affairs, Indian Health Service and Bureau of Indian Education, will continue without interruption, according to the U.S. Department of the Interior.

The Spirit Lake Nation Tribal Council in a Wednesday statement noted that federal funding could be delayed, and that the inability to communicate with furloughed federal employees could impact some services.

“While we have not yet received coordination from our federal partners, the tribe has been proactive in planning for this moment,” Spirit Lake Chairperson Lonna Jackson Street said in the statement.

On Thursday, the Spirit Lake Nation announced it would be restricting assistance provided through the Low Income Home Energy Assistance Program due to limited funding. The program, funded through the U.S. Department of Housing and Urban Development, helps keep low-income homes warm during the winter.

“We are implementing a strict priority list to ensure that our most vulnerable community members receive assistance during this critical time,” the tribe said. The priority list includes households with elderly and people with disabilities, children under 5 and those facing crisis situations, like homes that have had their utilities disconnected.

National parks

Recreational and historic sites in North Dakota operated by the National Park Services — including Theodore Roosevelt National Park and Knife River Indian Villages — will generally remain open during the shutdown. However, visitor centers will be closed, according to the agency’s September 2025 contingency plan.

Law enforcement, emergency response services and fire suppression services will continue, the plan states. It indicates roughly two-thirds of the agency’s employees are on furlough during the shutdown.

Federal courts

North Dakota federal court is staying open during the shutdown, said Kari Knudson, clerk of court for the district.

“The federal courts have both constitutional and statutory obligations that don’t go away just because there is no funding,” she said.

Judges will continue to be paid, she said. Staff could potentially see delays to their paychecks, though Knudson said she doesn’t anticipate that happening.

The court must delay or defer all non-salary related, non-essential expenses, Knudson said — which could include things like buying office supplies or entering into new contracts for services.

North Dakota U.S. Attorney’s Office spokesperson Terry Van Horn said the agency’s work “will continue as usual.” He said the office could not comment as to whether any of its attorneys have been furloughed. Knudson said some of her emails to federal attorneys have bounced back with out-of-office messages.

The federal judiciary in July ran out of money to hire private defense attorneys to represent defendants who can’t afford their own representation. Most of the time, these federal defendants are represented by public defenders, but sometimes the judiciary must appoint an outside lawyer.

Since early July, private attorneys who accept these appointments have worked without pay.

The hope was that they would get reimbursed in October once the fiscal year turned over, but since Congress has not adopted a budget, this is not yet possible, Knudson said.

Since July, private defense attorneys in North Dakota seem to be passing up new appointments more frequently, Knudson said, but the court has so far found someone who’s willing.

North Dakota Monitor reporter Michael Achterling contributed to this report.

North Dakota Monitor reporter Mary Steurer can be reached at msteurer@northdakotamonitor.com.