Illustration: Gabriella Turrisi/Axios
The government's on track to shut down at the end of this week and several tech programs could be delayed without federal employees working to implement them.
Why it matters: If key agencies halt work, the delay is likely to derail bipartisan goals of remaining technologically competitive, fostering innovation and bridging the digital divide.
1. The Commerce Department
The more than 500 companies that have expressed interest in CHIPS and Science Act funds for domestic semiconductor manufacturing could be delayed in their application process.
Depending on how long a shutdown lasts, other CHIPS programs that could be impacted include:
- Funding opportunities for smaller supply chain projects and commercial R&D facilities.
- The launch of the National Semiconductor Technology Center.
- Announcements for the Regional Technology and Innovation Hubs Program and Recompete Pilot Program.
Commerce's National Telecommunications and Information Administration is in the middle of reviewing initial proposals and 5-year action plans for the $42.5 billion Broadband Equity, Access and Deployment Program.
- The program would continue because its funding, from the IIJA, doesn't come out of lapsed appropriations.
- Commerce is also responsible for export controls of sensitive technologies to foreign adversaries.
2. The Federal Communications Commission
FCC Chair Jessica Rosenworcel highlighted the impact on the agency's work in the space economy sector, saying it's difficult to hire in-demand satellite engineers when they see shutdowns could put their paychecks in jeopardy.
- "That's not just not good for me and the agency, that's not good for the United States economy and its future," Rosenworcel told Maria during an event on Wednesday.
- The Affordable Connectivity Program, which provides low-income households monthly internet subsidies, would continue thanks to infrastructure funding — although that money is set to run out next April.
3. The Federal Trade Commission
The agency says it has enough money to stay open for three weeks.
- "In the event of a government shutdown, the FTC will use prior year unobligated balances to fund continued operations for at least three additional weeks (i.e. through Friday, Oct. 20) – thereby, temporarily avoiding the need to shut down agency operations," said FTC spokesperson Douglas Farrar.
What they're saying: "It's a giant distraction for our teams. We have a set of people who work incredibly hard to support these missions, and the fact that they may not get a paycheck after next week is really upsetting and disturbing," NTIA administrator Alan Davidson told Maria on Wednesday.
- "It takes a lot of our attention away from all of this work, from the work on AI and from the work on broadband. ... Every week that we're delayed is another week that people are not going to get the connections that they need to thrive online."
- Commerce Secretary Gina Raimondo said during a Sept. 19 hearing: "A shutdown sets us back in a huge way. Sending people home and slowing down our work — that would be a huge problem."
