This Friday at midnight, the federal government once again faces the prospect of a shutdown unless Congress reaches a compromise or passes a short-term funding extension. Although this potential shutdown would be limited to a single agency, that agency—the U.S. Department of Homeland Security—plays an outsized role in the functioning of the U.S. labor market.

Because of funding provided in the July 2025 budget reconciliation bill, several experts have noted that certain enforcement operations at U.S. Immigration and Customs Enforcement would likely continue. However, a lapse in appropriations would still disrupt large portions of DHS, including the Federal Emergency Management Agency, the Transportation Security Administration, the U.S. Coast Guard, and administrative operations that support more than 260,000 employees across the department. A shutdown could last for weeks, but even a short disruption would create immediate and compounding challenges for staffing firms and their clients. Learn about several of the most significant issues staffing firms may face during a prolonged DHS shutdown.