The Rosebud Sioux Tribe Office of Legislative Affairs Director has compiled a summary of how the federal government shut down has affected programs the tribe depends on. As of October 8, 2025, the United States federal government remains shut down for the eighth consecutive day following Congress’s failure to approve a federal spending bill or temporary funding extension, known as a Continuing Resolution (CR). This government shutdown has created significant disruptions across the country, with wide-ranging implications for Tribal Nations, federal employees, and essential government programs that directly serve Tribal communities.
The shutdown began at 12:01 a.m. Eastern Time on October 1, 2025, when existing federal funding expired.
The deadlock stems from deep partisan divisions between Republican leadership, including President Donald Trump and Speaker Mike Johnson, and Democratic leaders, including Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.
As of October 7, Congress remains at a legislative impasse.
The Senate has failed multiple times to pass competing short-term funding resolutions.
The Republican-led proposal sought to fund the government until November 21, 2025, excluding
health-care subsidy extensions. The Democratic proposal tied continued government operations to provisions protecting federal health-care subsidies and child care support, which Republicans oppose.
The House of Representatives continues to align with former President Donald Trump’s position,
demanding significant cuts to discretionary domestic programs and the elimination of clean energy and immigration funding before reopening the government.
Negotiations between the White House and congressional leadership stalled late Monday night, with no clear path forward. This deadlock has created a policy vacuum affecting every major department, including Interior, Transportation, Health and Human Services, Housing and Urban Development, and Agriculture — all of which sustain key tribal contracts and compacted programs.
Federal Developments – October 6 and 7, 2025
October 6 (Day 6):
White House Labor Warnings: Federal agencies began formal layoff preparations (known as “RIF” notices). These would apply to programs that lack authority to continue without appropriations, a step not taken since the 2013 shutdown.
Transportation Safety Impact: The Hollywood Burbank Airport air traffic control tower was unstaffed for roughly six hours, causing flight delays and highlighting nationwide staffing shortages. FAA and TSA employees continue to work without pay, with their first missed paycheck expected October 14.
Federal Communications Commission (FCC): Nearly 80 percent of FCC staff were furloughed,
suspending licensing, spectrum allocation, and public safety coordination.
Economic Data Disruptions: The Bureau of Labor Statistics and Department of Commerce postponed major economic releases, including the Consumer Price Index (CPI) and employment reports, creating instability in financial markets and delaying federal cost-of-living adjustments.
Tribal Implications: Many tribal programs that depend on federal financial data for cost-
reimbursement or budget certifications are experiencing processing delays or halted approvals.
October 7 (Day 7):
OMB Back Pay Reversal: A controversial new memorandum from the Office of Management and Budget (OMB) stated that furloughed federal workers may not be guaranteed back pay, contradicting prior precedent and the 2019 Back Pay Law. This decision has caused confusion among agencies and unions, potentially impacting contract and compacted tribal employees who mirror federal pay cycles.
Rural Air Service Threats: The Essential Air Service (EAS) program, which supports air travel to rural and tribal regions (including South Dakota), is expected to run out of funding as early as Sunday, October 12, risking suspended routes and limited regional travel options.
Social Security Impact: The Social Security Administration (SSA) confirmed that the 2026 Cost-of-Living Adjustment (COLA) announcement will be delayed because shutdown-related data interruptions prevent inflation calculations.
Transportation Workforce Stress: The U.S. Transportation Secretary reported an increase in air traffic controller fatigue and absenteeism, citing mental and financial strain among unpaid essential workers.
Senate Outlook: Bipartisan talks continue privately, but no framework for reopening has emerged. Lawmakers now estimate that the shutdown may extend beyond mid-October if the healthcare and budget disputes remain unresolved.
Tribal Program Operations
Bureau of Indian Affairs (BIA): Many non-essential staff are furloughed. Field offices are minimally staffed, and funding disbursements for contracts and compacts may be delayed. This affects tribal administration, law enforcement grants, and infrastructure funding.
Indian Health Service (IHS): IHS facilities remain open for essential care but are operating on
carryover funds. If the shutdown continues, medical supply orders and third-party billing
reimbursements could be disrupted, leading to shortages in clinics and pharmacies.
Housing and Urban Development (HUD): Tribal housing programs may experience processing delays in grants, payments, and federal reporting, potentially impacting renovation projects and housing assistance applications.
U.S. Department of Agriculture (USDA): Funding for WIC nutrition, SNAP benefits, and tribal
school lunch programs could lapse if the shutdown extends beyond two weeks.
Education and Head Start Programs: Grant-funded tribal education services are operating on reserves and may face temporary closures if reimbursements are further delayed.
Federal Employees and Contracted Workers
More than 750,000 federal workers are currently furloughed or working without pay.
Contract employees—including tribal members serving under 638 contracts—may also face delayed compensation if federal payment processing remains suspended.
Economic and Infrastructure Consequences
Federal data used to determine inflation adjustments, social security COLAs, and tribal budget
projections are temporarily unavailable.
If the shutdown extends into mid-October, air service reductions may isolate rural communities, increase fuel costs, and delay freight shipments critical to reservation commerce.
Grant reporting and auditing schedules tied to federal fiscal deadlines (September 30–October 31) are now disrupted, affecting compliance and close-out procedures for fiscal year 2025.
Our office will continue to bring updates as they become available. Again, we ask all members of the Sicangu Oyate to remain vigilant, to support one another during this time, and to contact our Tribal offices if you encounter difficulties accessing essential services. Together, Oyate to remain vigilant, to support one another during this time, and to contact our Tribal offices if you
encounter difficulties accessing essential services. Together, we will navigate these challenges with strength, unity, and resiliency.
Sicangu News 