The patient still lives, but the prognosis is grim, Maine’s top fiscal official told lawmakers on Friday regarding the federal government shutdown now in its third week.
Maine Commissioner of the Department of Administration and Financial Services Kirsten Figueroa outlined the state’s daily evaluation of the impacts of the federal government shutdown on funding, programs, and employees during a legislative committee briefing on Friday afternoon.
Figueroa emphasized that while federal funding has not completely stopped, cash flow is limited and will diminish the longer the shutdown continues. She compared the situation to turning off a water spigot, “money continues to flow temporarily from existing funds, but no new funds are coming in.”
The state is assessing the status of federal funds, employee obligations, programs, and constituent impacts each day. Approximately 2,500 state employees are funded entirely or in part by federal dollars. Current projections indicate funding stability through the end of October, with concerns increasing after the beginning of November.
The Department of Transportation can sustain projects for several weeks, but its ability to contract and pay contractors would be significantly reduced without a longer-term federal appropriation.
The shutdown also affects federal employees, including 379 military personnel who are not under the state’s umbrella.
For the Department of Health and Human Services, there are no immediate impacts on Medicaid draws or other awarded grants. However, the federal government has advised DHHS to delay November issuance of SNAP benefits if the shutdown continues. New applications processed after Oct. 16 will not receive their usual combined October and November payments.
The shutdown may also delay federal technical assistance for tax changes, Medicaid, and marketplace programs due to furloughed IRS employees. These delays could cause confusion as agencies prepare for the upcoming tax year.
Figueroa said agencies are using available state funds and existing financial authority to manage short-term impacts but warned that prolonged disruption could lead to layoffs, furloughs, and program interruptions.
Layoffs would be determined by seniority, and employees would receive 10 days’ notice.
Lawmakers and agency officials discussed mechanisms for frequent updates as the situation evolves.
Figueroa, who has served throughout the pandemic and multiple budget cycles, received praise from legislators for her professionalism and public service during the briefing. Figueroa will retire on Oct. 31, 2025, following nearly 30 years of dedicated service to the State of Maine.
