If your federal or state contracting pipeline has slowed to a crawl lately, you're not alone. Between the ongoing federal shutdown and Texas’s surprise freeze of the HUB program, small businesses chasing set-asides and state-funded work are finding themselves stuck in limbo. But here’s the good news: procurement hasn’t stopped, it’s just shifted closer to home.

Local governments and school districts still need IT support, maintenance crews, classroom equipment, and more. And unlike paused state programs or federally delayed payments, these buyers tend to move fast and pay reliably. Let’s break down why this pivot matters, how to do it, and what smart GovCons are doing to stay cash-flow positive during these freezes.