The lasting effects of the government shutdown on construction companies
The federal government shutdown officially ended on November 12, 2025 after 43 days—making it the longest in U.S. history. With appropriations restored through January 30, 2026, federal workers have returned.
However, it might not be “smooth sailing” from here on out, especially for construction companies.
The impact on construction companies
While the government shutdown impacted employers of all workplaces, construction companies faced additional challenges.
During the shutdown, many contractors faced payment freezes for completed work, forcing tough decisions—either pause operations or risk defaults. These disruptions led to increased costs, remobilization challenges, and credit strain.
When budgets tighten and schedules slip, safety programs often suffer. Training gets delayed, PPE purchases are postponed, and crews feel pressured to work faster under riskier conditions. These factors can increase the likelihood of injuries and OSHA violations.
Now that the government is back in operation, construction companies should prepare for lasting effects.
First, there may be delays in permits, funding, and scheduling. Federal staff are remobilizing, which means cost-reimbursement projects may be postponed. Contracting reviews and approvals could take three to four months longer than usual, similar to what happened during the 2018–19 shutdown. Industry experts recommend building resilience by including contingency provisions in contracts and diversifying project portfolios to reduce risk.
OSHA enforcement returns
During the shutdown, OSHA scaled back its activities, limiting inspections to cases involving imminent danger, fatalities, and severe incidents. Now that the government has reopened, enforcement is returning in full force. Employers should expect a surge in inspections as OSHA works through its backlog.
Keep in mind, compliance obligations never stopped. Injury and illness logs, abatement deadlines, and reporting requirements remained in effect throughout the shutdown. Companies that fell behind must act quickly to correct any gaps and prepare for renewed scrutiny.
Key to remember: Employers should act now to catch up on compliance and prepare for additional inspections.


















































