When the Government Shuts Down, Founders Shouldn't
Why federal shutdowns are a golden window for founders applying to grants
Written by Scout Editorial Team
When a government shutdown hits, most founders panic. The headlines are grim, inboxes fill with uncertainty, and every grant writer's Slack channel lights up with one question: "Should we stop writing?"
After working in the federal grants and contracting world for more than a decade, I've learned this truth: a government shutdown is not a reason to stop, it's an opportunity to get ahead.
Why Shutdowns Feel Scary (and Why They Shouldn't)
Every few years, political gridlock in Washington leads to a "government shutdown", a temporary pause on non-essential federal operations when Congress can't agree on a spending bill.
That can include grant offices, contracting divisions, and the staff that process federal submissions. Emails go unanswered. Deadlines sometimes shift. The system feels frozen.
But here's the thing: it always re-opens.
Agencies resume, funding resumes, and deadlines reset. What doesn't reset is the time founders lose if they stop writing.
What Founders Typically Do and Why That's a Mistake
When a shutdown hits, many early-stage founders or researchers hit pause. It feels logical - why write a grant when no one's reading them?
But that instinct creates a widening gap. Those who stop lose valuable momentum, while those who keep drafting quietly move to the front of the line when the lights turn back on.
Here are the most common mistakes founders make during a government shutdown:
❌ Don't Freak Out
This happens more often than you think. Since 1980, there have been over 20 shutdowns, some lasting just a few days. They're disruptive but predictable.❌ Don't Stop Your Applications
Pausing your work means you'll be starting from scratch when things reopen. The competition won't be waiting for you.❌ Don't Fall Into "Wait-and-See" Mode
Shutdowns are temporary, but grant deadlines and submission windows often aren't. Even when agencies pause reviews, the most prepared applicants are the first ones considered once operations resume.
What You Should Do Instead
A shutdown can actually be one of the best times to strengthen your funding strategy. While everyone else freezes, you can quietly build an advantage.
Here's what that looks like:
✅ Keep Going
Federal agencies always reopen. When they do, reviewers will be flooded with last-minute applications. Being ready to submit gives you an immediate edge.✅ Polish and Push Harder
Use this downtime to refine your proposal. Tighten your Specific Aims, improve your narrative clarity, and align your impact statement with current funding priorities. It's rare to have breathing room like this - use it to make your application shine.✅ Prepare for the Reopen
Treat this time like the calm before a storm. Build your submission plan, finalize your supporting documents, and queue everything up in your grant portal. When agencies flip the switch, you'll be first in line.
Momentum Compounds
It's easy to mistake a shutdown for a stop sign. It's not. It's a yield sign - a temporary slowdown before acceleration.
The founders who maintain momentum during uncertain times are the ones who ultimately win funding when the system restarts. Their drafts are cleaner, their strategies are sharper, and they're mentally a step ahead.
Because the truth is simple: the government will reopen, and grants will resume.
The Bottom Line
Shutdowns are temporary. Grant deadlines and competition are not. So the best thing you can do? Stay the course. Keep writing. Keep building momentum.
When the system comes back online, you'll already be in motion while others are still warming up.