A sign in front of the U.S. Capitol Visitor Center reads “closed due to a lapse in appropriations;” the Capitol dome is visible in the background under a clear blue sky.
A sign announces that the U.S. Capitol Visitor Center in Washington, D.C., is closed on the first day of a partial government shutdown, Wednesday, Oct. 1, 2025. Photo by Julia Demaree Nikhinson/AP

As lawmakers in Washington appear far from reaching a deal to reopen the federal government, leaders in Vermont are monitoring what the shutdown could mean for the Green Mountain State. On Wednesday, many said it all depends on the length of the stalemate.

“I’m not aware of any immediate impacts of any significance,” Gov. Phil Scott said at his weekly press conference Wednesday. “We’ll have to see how long this shutdown continues.”

His administration had previously directed state government leaders to draw down as much federal funding as possible in preparation, Scott said. But the governor acknowledged Vermonters’ concerns regarding what a shutdown could mean for them. 

“They hear the government’s going to shut down, ‘We may lose this benefit or that benefit,’ and they wonder, ‘How can I survive?” he said. “So from our perspective, we want them to know we will do everything we can to protect Vermonters during this trying time.”

Starting Oct. 1, with lawmakers unable to reach a deal, the federal government has ceased nonessential functions. About 6,600 federal employees live in Vermont, as of August, according to data from the Federal Reserve. Many of those workers will not receive their regular paychecks, and local businesses with federal contracts may also stop receiving money while the shutdown continues. 

Furloughed federal employees in Vermont can apply for unemployment insurance as of Wednesday, according to the Vermont Department of Labor.

“Our goal is to ensure that those who have been impacted understand their options, know what documentation will be required, and feel prepared to access unemployment benefits if eligible,” Kendal Smith, the department’s commissioner, said in a press release.

Furloughed workers have two weeks to apply and will need to repay benefits to the state if the federal government eventually approves backpay, the department said. 

In a separate press conference Wednesday, Vermont State Treasurer Mike Pieciak said Supplemental Nutrition Assistance Program — or 3SquaresVT — benefits for Vermonters should remain stable for the time being, given preparations program administrators have made in advance of the shutdown. But he cautioned that current available funds won’t last forever.

“It all is a matter of how long the shutdown lasts for,” Pieciak said, adding that the state’s communication with the federal government as new SNAP policies are implemented may become “quite challenging.” A Republican-led bill approved in July makes a number of significant changes to the program’s administration and eligibility that began to take effect Wednesday. 

Anore Horton, the executive director of Hunger Free Vermont, said 3SquaresVT participants would receive uninterrupted benefits unless the shutdown continues into November. Application processing for newcomers to the program will “continue as usual” for the time being at the state level, she said.

At Patrick Leahy Burlington International Airport, there has been no immediate impact of the shutdown, according to Jeff Bartley, the airport’s director of innovation and marketing.

Three different federal partners work at the airport, including air traffic control, the Transportation Security Administration and the National Weather Service, Bartley said, and those employees remain at work.

While operations are steady for now, Bartley said the shutdown takes a toll on staff, and the airport’s management team is looking to support federal workers however possible. 

“We’re constantly trying to ask questions of what we can do to make this process easier for them, because they’re just so hugely valuable to us, to the region,” he said. “We’re truly thankful for their dedication to the mission of the airport.”

The Vermont National Guard is also impacted by the federal freeze. While the Guard “remains ready to respond to emergencies and to fulfill essential missions despite a government shutdown,” a spokesperson wrote in an email, “some administrative and training activities may be delayed.”

Active-duty Guard members and other employees deemed necessary for daily operations will remain at work. But others will be furloughed, impacting administrative tasks like responding to general inquiries and records requests.

Support for Vermont’s small businesses and nonprofit organizations interactions with the federal government, including help with applying for grants and bidding on contracts, may be similarly affected.

The Vermont Agency of Commerce and Community Development referred questions about impacts on businesses to the U.S. Small Business Administration, which has an office in Williston.

An email to the SBA’s Vermont deputy director prompted an automated reply, indicating the employee had been furloughed. 

Theo Wells-Spackman contributed reporting. 

VTDigger's statehouse bureau chief.