City of Oakland Preparations for Federal Government Shutdown 2025
Published on September 30, 2025
A Message from Oakland City Administrator Jestin Johnson
The City administration and our departments are preparing for anticipated or potential impacts of the federal government shutdown, and we are reaching out to let you know what we’re assessing regarding potential impacts to Oakland, and how we are preparing.
Like cities across the United States, Oakland expects significant impacts will include local receipt of federally administered grant funds. On average, the federal government provides nearly $600 billion annually in outlays to state and local governments through federal grants. A federal government shutdown may cause disruption to or may result in the cessation of grant administration activities depending on the duration of the shutdown and decisions made by administration officials.
According to past guidance from the federal Office of Management and Budget (OMB), federal agencies experiencing a lapse in appropriations would halt most grant management activities, including payment processing, oversight, inspection, accounting, and administration, except in very limited circumstances.
Local governments’ ability to continue operating federally funded programs during a shutdown depends on several factors: the amount of advance payments retained, the number of reimbursement payments received before the shutdown, and the availability of other funding sources to bridge the gap.
The City Administrator’s Office directed City departments to prioritize fast draw-downs of already-committed funds and completion of any outstanding paperwork needed to secure funding the federal government has already committed to Oakland.
During the federal shutdown, essential City services will continue: we will provide public safety, infrastructure, housing, and business support services like economic development and permitting, all as normal.
You may recall during the City’s budget process in the spring this year, the Mayor’s Office and City Council wisely anticipated the possibility of federal funding reductions and took steps to begin preparing, including some funding that was set aside to help offset major reductions if necessary. At this time we do not think it is necessary to start discussing activation of those funds, but we are grateful to our policy makers for looking ahead and taking these key preparatory steps.
We are in close contact with our federal delegation, including Senator Alex Padilla, Senator Adam Schiff, and Representative Lateefah Simon. We will continue to monitor the situation closely along with our professional support in Sacramento, and we will provide additional updates as they may be needed. For more information we recommend reviewing the White House Office of Management and Budget Website: https://www.whitehouse.gov/omb/.
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