Treasury Department Announces Contract Suspension Plans for Impending Appropriations Lapse

A message for companies with Treasury contracts: Orderly Shutdown for a Lapse in Appropriations Planning Appropriations provided for the following bills funded in Division A of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (Public Law 119-37) expire at 11 :59 pm January 30, 2026.

As it is now clear that Congress will not complete its work before the expiration of appropriations, Treasury is now executing plans for an orderly shutdown. The Anti-deficiency Act, 31 U.S.C. §§ 1341 and 1342 prohibits agencies from obligating funds exceeding, or in advance of, appropriations and from employing personnel during a lapse in appropriations except to protect life or property.

This requires that performance of many contracts be suspended, either because funds are not available for the contract or because Government personnel required to oversee performance are not available. Firms having an active contract with the Department of the Treasury are advised to contact their bureau contracting office to determine whether contract performance is impacted by a lapse in appropriations.

During a lapse in annual appropriations, Treasury may continue certain activities, which fall under established exceptions to the Anti-deficiency Act. The Treasury bureau procurement office, in consultation with customer program offices and legal counsel, has reviewed its active contracts to determine whether performance under the contract or order may continue.

The Internal Revenue Service, the Bureau of the Fiscal Service, and the Office of the Inspector General provided listings of contracts where performance (good/services provided) will continue during a lapse in appropriations per the contract’s terms and conditions (i.e.: contract performance is not affected).

Those sites are - https://www.irs.gov/about-irs/procurement https://fiscal.treasury.gov/doing-business-with-fiscal-service/updates.html https://oig.treasury.gov/OIG-Contracts Contracts identified as not excepted or not listed in these inventories may be suspended due to the lapse in appropriations.

Questions may be sent to the respective bureau: IRS and Treasury Departmental Offices - contractadministration@irs.gov Fiscal Service - contractadministration@fiscal.treasury.gov OIG – multiple email addresses are listed at https://oig.treasury.gov/OIG-Contracts We will provide updates to the Treasury operating status on www.treasury.gov.

Contractors are also encouraged to stay tuned to local and national news reports and to verify the Federal government’s operating status at OPM.gov.