By interlink | 02/10/2025
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US Government at Risk of Shutdown: Essential Transportation Continues, But Risks Remain.
In the event of a U.S. government shutdown, essential freight operations such as port and border inspections are expected to continue, but non-core services could be disrupted, causing delays and risks to the supply chain.
In the event of a federal government shutdown, most essential freight operations are not expected to be affected. This is because the agencies operating these programs are often funded by separate mechanisms such as the Highway Trust Fund, or their employees are considered “essential” and will continue working.
However, this year, the Trump administration has threatened to use the shutdown as a pretext for further federal staff cuts, creating uncertainty about the extent of the impact on government employees, including those working at agencies under the U.S. Department of Transportation (DOT).
Jameson Rice, a transport attorney and partner at the law firm Holland & Knight, said: “The Department of Transport’s specialized agencies are largely responsible for safety functions, so whenever you cut from there, you risk reducing safety. That might not be felt immediately, but it will be in the long run.”
Essential Operations Remain Ongoing
According to the latest contingency plans, short-term safety functions related to domestic freight transport will continue, including:
- Road inspections conducted by the Federal Motor Transport Safety Administration (FMCSA).
- Rail accident investigations and safety recommendations by the Federal Railroad Administration (FRA).
- The U.S. Maritime Administration’s (MARAD) ship and port infrastructure security programs will continue to utilize “remaining budget balances.”
- Inspection of imported goods at land and sea borders is handled by the U.S. Customs and Border Protection (CBP), with approximately 93% of personnel retained.
- Ship inspections and port security are performed by the U.S. Coast Guard, with approximately 95% of personnel retained.
Risk of Delays from Other Agencies
While most CBP personnel are considered essential, this may not be true for other agencies that also oversee cargo inspections, such as the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), the Department of Agriculture (USDA), and the Consumer Product Safety Commission (CPSC). Activities such as on-site investigations, product testing, and recalls by the CPSC could be halted, potentially disrupting the supply chain.
Cindy Allen, an international trade consultant and former CBP executive, shared: “What is sometimes not considered essential is that additional inspections of shipments may be required and carried out by government agencies other than CBP.”
“So, products subject to government oversight may require additional review or inspection which could be affected, meaning there is a potential for slowing down the flow of goods,” she added.
Specific Impact on Regulatory Agencies
- Federal Maritime Commission (FMC): Will be heavily impacted. According to the plan, all “work aimed at advancing the agency’s mission to ensure a competitive and reliable international shipping supply system, support the U.S. economy, and protect the public from unfair and fraudulent practices” will be halted.
- Surface Shipping Board (STB): Activities related to processing applications, filing legal documents, and most litigation are likely to be suspended. This could impact the timeline for reviewing the $85 billion merger between Union Pacific and Norfolk Southern.
NEWS & BLOG
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