The U.S. government has officially entered a partial shutdown, suspending many federal agency functions and creating uncertainty for trade and supply chains.

The U.S. government has officially entered a partial shutdown as of 12:01 a.m. ET on Oct. 1, 2025, suspending many non-essential discretionary federal agency functions and creating uncertainty for trade and supply chains.

The U.S. government shut down today after Congress failed to pass the necessary funding legislation. This has triggered the suspension of many non-essential agency operations until further notice. While essential services will continue, including national security, public safety, and mandatory programs like Social Security, importers and exporters should prepare for disruption across key regulatory and clearance processes.

Government shutdowns are not unprecedented in the U.S., but they bring with them a wide range of challenges for businesses. This latest shutdown will see many federal staff furloughed, limiting the ability of agencies to process paperwork, respond to enquiries, and deliver on routine functions that global supply chains depend upon. The scale of impact varies by agency, for example, most Department of Homeland Security staff continue working, while agencies like the EPA furlough most of their workforce.

Customs and Border Protection (CBP) CBP will continue its frontline role at ports of entry. Cargo inspection, passenger processing, and law enforcement activities remain in place, as these are classified as essential. However, importers should expect delays in administrative processes such as policy reviews, regulatory updates, and non-critical support functions. In other words, cargo will keep moving but expect slower turnaround on paperwork and correspondence.

Food and Drug Administration (FDA) The FDA will continue activities deemed vital to public health and safety, including emergency reviews, recalls, and many user fee–funded processes. However, clearance of certain food, drug, and medical shipments not covered by fee-based programmes may face longer wait times. The agency’s ability to accept or process some new fee submissions may also be constrained depending on federal guidance. Routine food safety inspections and some policy development have been suspended.

Environmental Protection Agency (EPA) The EPA will maintain emergency response and law enforcement functions. However, new permits, routine inspections, and most research projects are on hold unless directly tied to imminent threats to human life or property. According to the EPA’s contingency plan, most of its staff are furloughed during a shutdown, leaving only a small core in place for urgent duties. This may slow the clearance of some shipments regulated by environmental standards.

Impact on Supply Chains The shutdown is expected to slow regulatory approvals, lengthen clearance times for some categories of goods, and create planning uncertainty for businesses reliant on predictable shipment flows. While most cargo will continue to move through ports, the administrative slowdown could affect timelines and increase the risk of backlogs. The extent of disruption will depend heavily on how long the shutdown lasts.

Woodland Group is actively monitoring agency updates and working with clients to minimise disruption. This statement reflects Woodland Group’s advisory to its clients. For tailored advice on how the shutdown may affect your supply chain, please contact your Woodland Group representative.