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    • News
    • News: US budget

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

    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.

    By Lorenzo Piccio // 27 September 2013
    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.

    Read more on U.S. aid reform online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.

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    About the author

    • Lorenzo Piccio

      Lorenzo Piccio@lorenzopiccio

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

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