The Administrative Office of the U.S. Courts has issued a notice to contractors regarding possible actions in the event of a federal government shutdown, which could affect funding for contracts across the Judiciary.
Contractors have been told they must continue to meet all obligations under their current contracts unless they receive written instructions from a contracting officer stating otherwise. The notice states, “Unless notified in writing by a contracting officer, all Judiciary contractors must continue to fulfill their contractual obligations to the Judiciary in the event of a government shutdown, i.e., contractors must continue to comply with all terms, conditions, and delivery and performance requirements specified in their contracts during the period covered by a lapse in appropriations.”
There will be no additional notification for contracts that are not impacted by any lapse in appropriations.
The budget for the next fiscal year has yet to be passed. This situation raises concerns about a potential temporary loss of funding for contracted goods and services and may limit how the Judiciary manages its contracts. Congress still has time to pass legislation before current funding expires at midnight on January 30, 2026.
If Congress does not act and a government shutdown occurs, non-essential government activities would stop. This could disrupt contract performance or lead to cancellations or reductions in scope. The notice explains: “A shutdown, a sovereign act of the government, may prevent contractors and the Judiciary from fulfilling their contractual obligations to each other due to circumstances beyond their control. In other cases, the government may cancel planned procurements, reduce the scope of contracts, stop work under contracts, or terminate contracts.”
If it becomes necessary for any contract action—such as stopping work or reducing scope—a contracting officer will notify affected contractors promptly with specific instructions.
“Thank you for your continued support and business with the federal Judiciary, and for your cooperation as we work together to manage a potential lapse in appropriations,” concludes the statement from the Administrative Office.
