Notice to U. S. Department of Education (ED) Contractors-Lapse in Government Appropriations

The U.S. Department of Education has issued a Special Notice to inform its contractor community about a lapse in government appropriations that took effect on October 1, 2025. The appropriations provided under the Full-Year Continuing Appropriations and Extensions Act, 2025 expired on September 30, 2025, leaving the Department without annual appropriations. While the House of Representatives passed a clean continuing resolution (H.R. 5371) on September 19 that would fund the government through November 21, the notice indicates that Senate Democrats are blocking its passage due to policy demands including $1 trillion in new spending. This funding lapse directly impacts all contractors working with the Department of Education. The Department will operate with very limited staff during this period, and contractors may be contacted by different Contracting Officers than usual.

The primary purpose of this notice is to provide clear guidance to contractors on how to proceed during the appropriations lapse. Contractors whose work is not dependent on additional appropriations must continue performance and comply with all contract terms, conditions, requirements, and deliverables unless they receive formal written notice to stop from a Contracting Officer. However, contractors whose work depends on additional appropriations must cease all activities requiring additional funding unless they receive specific written authorization from a Contracting Officer identifying excepted activities that must continue. The notice applies to all existing Department of Education contractors regardless of contract type or value. During this lapse period, contract payments may not be processed, and contractors should expect potential delays in communications due to the Department's reduced staffing levels.