City of Oakland officials are preparing for possible impacts from a federal government shutdown expected in 2025. City Administrator Jestin Johnson stated that the administration and departments are evaluating how such a shutdown could affect Oakland, particularly in relation to federal grant funding.
Johnson noted that, similar to other cities nationwide, Oakland relies on federally administered grants as part of its budget. The federal government typically distributes nearly $600 billion each year to state and local governments through these grants. A shutdown could disrupt or halt the administration of these funds, depending on how long it lasts and decisions by federal officials.
Guidance from the federal Office of Management and Budget (OMB) indicates that during a lapse in appropriations, most grant management activities would stop. This includes payment processing, oversight, inspection, accounting, and administration—except in very limited cases.
The city’s ability to continue operating programs funded by these grants will depend on factors such as advance payments already received, reimbursement payments made before the shutdown begins, and whether alternative funding sources are available.
Johnson explained that city departments have been instructed to expedite the use of committed funds and complete any outstanding paperwork needed to secure existing federal commitments.
Essential city services—including public safety, infrastructure maintenance, housing support, economic development initiatives, and permitting—will continue during any potential shutdown.
Earlier this year during Oakland’s budget process, city leaders anticipated possible reductions in federal funding. “You may recall during the City’s budget process in the spring this year, the Mayor’s Office and City Council wisely anticipated the possibility of federal funding reductions and took steps to begin preparing, including some funding that was set aside to help offset major reductions if necessary,” Johnson said. “At this time we do not think it is necessary to start discussing activation of those funds, but we are grateful to our policy makers for looking ahead and taking these key preparatory steps.”
The city remains in communication with its congressional delegation—including Senator Alex Padilla, Senator Adam Schiff, and Representative Lateefah Simon—and continues to monitor developments closely with support from representatives in Sacramento. For further information about federal agency operations during a shutdown period or related guidance documents from OMB: https://www.whitehouse.gov/omb/.
