FTC Shuts Down Due to Funding Lapse, First Time Since 1980

The FTC's closure is a reminder of the 1980 shutdown that changed how government shutdowns are used. Despite more essential work continuing this time, it highlights the need for timely appropriations.

, and Administrator

2025 October 28 . 7:18 AM

1 min read

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FTC Shuts Down Due to Funding Lapse, First Time Since 1980

The Federal Trade Commission (FTC) has temporarily closed its doors as of October 1, 2025, due to a lapse in government funding. This marks the first time since 1980 that the agency has shut down due to a lack of appropriations.

In 1980, the FTC also faced a shutdown, lasting just one day. Attorney General Benjamin Civiletti's opinion led to this closure, stating that continuing operations without funds violated the 1884 Antideficiency Act. This event set a precedent, leading to the use of government shutdowns as a political tool in subsequent decades.

Before 1980, government shutdowns were unprecedented. Agencies typically continued operations until new funds were provided. Today, the FTC's shutdown guidance allows more than 400 employees to continue working, focusing on protecting life, property, or the agency's infrastructure. In contrast, the 1980 shutdown saw almost all of the FTC's 1,600 employees furloughed, with only a few exceptions. Federal marshals ensured no one was working at FTC offices during this period.

The FTC's current closure is a reminder of the 1980 shutdown, which introduced government shutdowns as a political tool. While today's shutdown allows for more essential work to continue, it underscores the need for timely appropriations to avoid disruptions in federal agency operations.