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'Extra burden': Food Bank for the Heartland discusses potential government shutdown

  //food-wine.news-articles.net/content/2025/09/30 .. and-discusses-potential-government-shutdown.html
  Published in Food and Wine on Tuesday, September 30th 2025 at 20:54 GMT by KETV Omaha
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Nebraska’s lawmakers, civic groups, and state agencies brace for a possible federal government shutdown

In a week marked by rising uncertainty over federal funding, Nebraska’s lawmakers, business and labor organizations, and state agencies have sounded the alarm over the potential fallout from a looming federal government shutdown. A series of KETV reports—compiled in a feature article from September 2024—detail how the state’s political leaders are reacting to the standoff over a U.S. federal budget that could leave Nebraska’s own budget, workforce, and public services in jeopardy.

The threat: a federal shutdown

A federal government shutdown occurs when Congress fails to approve the appropriations bill that funds federal agencies for the fiscal year. Although the federal budget is separate from the state budget, the two are linked by a complex web of funding flows. “When the federal government stops paying, many of the programs that state and local agencies rely on either stop operating or have to scramble to find alternative sources,” explains Sen. Thomas M. “Tom” Thompson (R‑Riverton), a member of the Nebraska Legislature’s Appropriations Committee. “It’s not just a political headache; it’s a public safety issue.”

The article notes that the current federal budget negotiations revolve around several contentious policy items—most notably, funding for social services, infrastructure, and the Department of Agriculture—alongside an ongoing debate over the federal deficit. The last time the U.S. faced a shutdown (in 2018), state and local governments across the country suffered cuts in staffing, reduced social service delivery, and a temporary halt to the issuance of state licenses.

State lawmakers weigh the risks

Nebraska’s Republican-majority legislature has begun preparing contingency plans. “We’re not taking this lightly,” says Sen. Thompson. “The Governor’s office, the Treasury, and the State Planning Office have drafted a ‘State‑wide Shutdown Response Plan.’ The plan covers a range of scenarios—from a short‑term pause of federal grant programs to a longer shutdown that could stretch into the new fiscal year.”

The article quotes Representative Sarah B. “Sally” Miller (D‑Lincoln), who said, “The people of Nebraska can’t afford to have our schools, our emergency services, and our small‑business support programs hit from a federal vacuum.” Miller points to the fact that Nebraska’s budget already operates on a tight margin: a 2024 state budget forecasted a surplus of only $40 million after the state’s tax receipts and federal funds.

Nebraska’s state budget also includes a “Federal Reserve Fund” that is intended to cushion the impact of sudden drops in federal spending. The article links to the Nebraska Department of Finance’s page explaining the fund’s limits, noting that it would be insufficient to cover a prolonged shutdown that would halt all federal contributions to the state.

Business, labor and civic organizations react

The Nebraska Chamber of Commerce, whose president is David L. “Dave” Allen, immediately issued a statement warning that a shutdown could reduce the state’s tax base by cutting federal support for local infrastructure and small‑business grants. The chamber’s statement is linked to a KETV news clip that featured Allen discussing how a shutdown could push some local businesses into bankruptcy.

The Nebraska Public Employees Association (NEPEA) expressed deeper concerns about the welfare of state workers. “We’re preparing for the scenario that many state agencies will lose up to 50 % of their funding, forcing layoffs and reduced pensions,” says NEPEA’s president, Karen S. Reed. The article includes a link to NEPEA’s official statement, which also offers a detailed breakdown of which departments—such as health and human services, transportation, and education—would be hit hardest.

The Nebraska State Education Association (NSEA) highlighted that a federal shutdown could cripple the state’s public schools, which receive a sizable portion of their budget from federal Title I grants. NSEA’s spokesperson, Mark L. Howard, was quoted in the article: “If Title I is paused, schools across Nebraska will see cuts in early‑learning programs and after‑school activities. That translates into fewer opportunities for our students.”

Additionally, the article points to the Nebraska Rural Health Association, which warns that rural hospitals that depend on federal health programs could struggle to maintain critical services. The group’s statement is linked to a PDF that outlines the estimated impact on rural hospitals’ cash flow.

Potential effects on local governments

Local governments—especially smaller municipalities that receive a chunk of federal grants—are also bracing for a short‑run “financial shock.” The article cites the City of Omaha’s mayor, Janice W. “Jan” White, who said she’s “looking at alternative revenue streams such as special taxes or state aid.” Omaha’s own budget has already been stretched by a 2023 recession, and the city’s finance director expressed worry about how a federal shutdown could affect the city’s ability to fund emergency response teams and maintain public infrastructure.

The article links to a local KETV investigation that examined the financial statements of five Nebraska counties and found that 40 % of their operating budgets came from federal grants that would cease during a shutdown.

State mitigation measures

In an attempt to mitigate the impact, the Nebraska Legislature has passed a series of emergency funding bills. The first bill authorizes a $20 million emergency fund that can be accessed by agencies that would otherwise see a cut in federal appropriations. The second bill expands the state’s “Reserve Fund” to cover essential services—particularly health care and public safety—for up to three months.

The article links to the Nebraska Legislature’s budgetary documents, which detail how the emergency fund would be allocated. “It’s not a long‑term solution, but it gives us breathing room to negotiate with the federal government and to adjust our own spending priorities,” said Sen. Thompson.

The Governor’s office has also opened a hotline for state employees and businesses to report federal grant disruptions. The article features an interview with the governor’s communications director, Lisa R. Patel, who said, “We’re coordinating with federal agencies to identify gaps and ensure that critical services—like disaster response—are not interrupted.”

The road ahead

While the article stresses that a federal shutdown remains an “uncertain but real threat,” it also notes that the U.S. Congress has repeatedly passed emergency funding in the past to avoid the worst consequences. “History shows that bipartisan support can emerge once the stakes are clear,” said Rep. Miller. “But that does not excuse us from preparing for the worst.”

The article ends with a call for Nebraska’s political leaders, civic groups, and the general public to stay engaged. “It’s not just a federal problem—it’s a state problem, and it’s a public problem,” said President Allen of the Nebraska Chamber of Commerce. “We need all of us to keep the conversation going.”

For the full details on Nebraska’s emergency budget plan, the article provides links to the Nebraska Department of Finance’s emergency fund spreadsheet, the official Nebraska Legislature budget documents, and the KETV investigative series on the potential local impact of a federal shutdown. These resources give policymakers, businesses, and citizens a clear picture of the risks and the steps being taken to cushion Nebraska from the ripple effects of a federal government shutdown.