Happy Fall! As the leaves change and we settle into a new season, Washington is once again grappling with a federal government shutdown. While shutdowns are unfortunately not new, this one carries unique and potentially long-lasting implications for transportation programs and projects across the country.

Unlike past shutdowns, the Office of Management and Budget (OMB) has issued new guidance directing agencies to consider issuing permanent Reduction in Force (RIF) notices rather than relying solely on temporary furloughs. This shift introduces significant uncertainty for the federal workforce and could alter the way agencies recover after a shutdown.

At the Department of Transportation (DOT), impacts vary:

  • Highway Trust Fund Agencies Continue: Programs funded through the Highway Trust Fund—FHWA, FTA, and NHTSA—will continue operating, and federal-aid reimbursements will flow as normal.
  • Widespread Furloughs: Roughly 40% of DOT’s workforce, or about 26,000 employees, are furloughed. The FAA is among the hardest hit, with nearly half of staff sidelined, though air traffic controllers and safety inspectors remain on the job without pay. FRA, PHMSA, and MARAD are also significantly impacted.
  • Multi-Year Funding Cushion: DOT is somewhat shielded from permanent RIFs due to reliance on multi-year funding sources like the Highway Trust Fund and IIJA, but risks remain.

For stakeholders, the impacts will be felt both in the short- and long-term:

  • Short-Term: Expect delays in discretionary grant processing, regulatory rulemakings, and communication with furloughed staff. Formula funding streams, however, will continue.
  • Long-Term: An extended shutdown will create backlogs and slow recovery. The potential for RIFs raises the risk of losing experienced USDOT personnel, which could have lasting effects on program delivery and oversight.

The ripple effect is already being felt in places like New York City, where roughly $18 billion in transportation projects face uncertainty and have been politicized as the shutdown continues. ACPA’s Board of Directors just met in Washington, D.C. and held a timely meeting with FHWA—even as the shutdown loomed—to emphasize the importance of sustained federal funding for infrastructure and continued funding for AID-PT (programs that help support the work of the CP Tech Center at Iowa State University). When this shutdown will end is anyone’s guess, with many lawmakers absent from Washington and not actively engaging in negotiations.

Looking ahead, we continue our focus on member priorities. Preparations are underway for our Airport Workshop in Charlotte later this month, October 28-30, and we are pleased to share that our World of Concrete registration code is live—please use code A14 when registering.

As always, ACPA is monitoring these developments closely and will keep members informed on what this means for concrete pavement projects and the transportation sector broadly.

Stay hopeful, work hard, be kind – America will persevere.

Cheers!

Save the Date – Upcoming ACPA National Events and Chapter/State Association Workshops:

Stay up to date on upcoming industry events with ACPA’s Calendar of Events. To submit your event details, please contact Vickie Spielman at vspielman@acpa.org.

September 30, 2025        Indiana/Kentucky Airport Workshop, Hebron, KY
October 28-30, 2025       ACPA Airport Workshop, Charlotte, NC
November 4, 2025           Nevada Infrastructure Concrete Conference, Reno, NV
December 2-4, 2025        ACPA Annual Meeting, Carlsbad, CA
January 12, 2026              TRB Reception, Washington, DC
January 20-22, 2026       World of Concrete, Las Vegas, NV
January 26-27, 2026       Count on Concrete Conference, Raleigh, NC
February 3-4, 2026          New York State Concrete Paving Conference, Clifton Park, NY
February 12, 2026            Indiana Chapter ACPA 2026 PCCP Workshop, Indianapolis, IN
February 12-13, 2026      46th Annual WCPA Concrete Pavement Conference, Pewaukee, WI
February 18-19, 2026      28th Annual ACPA/PA Conference, Harrisburg, PA
February 18-19, 2026      2026 Michigan Concrete Association Annual Conference, Battle Creek, MI
February 23-25, 2026     46th Annual Portland Cement Concrete Pavement Conference, Kansas City, MO
March 3-6, 2026               Con-Agg, Las Vegas, NV
April 22, 2026                   California Concrete Pavement Conference, Davis, CA

When the Lights Go Out: How a Government Shutdown Could Shake the Construction Sector

In his newly released report, economist Ed Sullivan unpacks how federal shutdowns ripple through the economy — and hit the construction industry especially hard. (The Sullivan Report)

While short-term shutdowns historically result in lost output that’s largely recaptured once operations resume, longer disruptions carry scarier consequences. Each week of shutdown can shave 0.1 to 0.2 percentage points off quarterly GDP growth, and repeated or prolonged closures elevate the risk of permanent economic losses.

For construction, Sullivan highlights several stress points:

  • Contracting & payments: Firms may face delays in payments, stalled solicitations, or even cancellations for federal building and Army Corps projects.
  • Permitting & oversight bottlenecks: Delays in NEPA reviews, EPA approvals, wetlands permits, OSHA inspections, and more can slow the start of new projects.
  • Cash-flow strain on smaller firms: Contractors with limited reserves may not weather delays or uncertainty.
  • Long-term drag from workforce cuts: Plans for potential reductions in force (RIFs) amplify risk by thinning agency staffing in oversight, inspections, and permitting.

Sullivan projects that, under a 35-day shutdown scenario paired with 150,000 federal job cuts, real GDP could see a 0.6 percent drag, with lasting damage rolling into Q4 and beyond. Interestingly, he suggests that while the near-term damage to public construction is severe, private sector construction — especially single-family housing — could see a modest boost in 2026 as fiscal stimulus rebounds.

To subscribe to the Sullivan Report visit his website.

Don’t Miss Ed Sullivan—Live in Carlsbad

We’re excited to announce that Ed Sullivan will be our featured economic speaker at the ACPA Annual Meeting in Carlsbad, CA. His insights on shutdown risk, infrastructure disruption, and forecasted recovery will be essential for all stakeholders in aggregates and construction.

Be sure to reserve your spot and come ready with questions — this is one session you won’t want to miss.