USAID: Most contracts and grants to continue should government shut down

A government shutdown would have little effect on aid projects funded by the U.S. Agency for International Development, an official said Friday. Photo by: Eliza Villarino / Devex

The U.S. Agency for International Development has reassured contractors and grantees that a possible government shutdown on Monday is unlikely to impact their programming.

In a statement issued Friday, a top USAID procurement official suggested that “the majority” of the agency’s grants and contracts “are not dependent on additional appropriations.”

“As a result, we determined that performance would likely continue during the lapse in appropriations,” USAID Senior Procurement Executive Aman S. Djahanbani wrote.

For implementing partners that might be affected by a possible government shutdown, Djahanbani said that the appropriate USAID contracting or agreement officer would be in touch to provide additional details. A more comprehensive “lapse plan” was to be posted on the USAID website Friday afternoon.

On Friday, the Senate rejected a House-passed spending bill that would cut funding for U.S. President Barack Obama’s signature health reform law, raising the odds of a government shutdown unless lawmakers find common ground by Monday, when funding expires. The threat of a government shutdown isn’t new; in the past few years, last-minute negotiations between Democrats and Republicans avoided it every time.

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About the author

  • Lorenzo Piccio

    Lorenzo is a former contributing analyst for Devex. Previously Devex's senior analyst for development finance in Manila.