Another shutdown. Another round of unpaid invoices, paused projects, and silence from contracting officers. If you’re a small or mid-sized government contractor, you don’t have time to wait and hope. You need a plan, now.

This post breaks down exactly how to build a 14-day cash-flow survival strategy to weather a federal funding freeze. It’s not theory. It’s built for real-world survival, so you can keep the lights on, protect your people, and come out the other side stronger.

If you thought the shutdown freeze was bad, wait until you hear what’s happening on the back end. A wave of delayed payments, frozen funds, and radio silence from contracting officers is pushing small and mid-sized federal contractors to the financial brink. And here’s the kicker: even when the shutdown ends, the chaos isn’t over. The invoice backlog is already massive, and it’s about to get a lot worse.

If you’re a small government contractor frustrated by federal slowdowns, here’s some good news: the state and local education (SLED) market is wide open, and you can land your first contract faster than you think. With the federal government in gridlock and payments delayed, now is the time to pivot your pipeline. K–12 schools are spending billions annually on tech, facilities, transportation, and student services, and they’re not waiting on Congress to get moving.

If you’re a small or mid-sized federal contractor still trying to dig out from the 2025 government shutdown mess, here’s some straight talk: filing a solid Request for Equitable Adjustment (REA) could be the difference between recovering real dollars and eating the loss. But if your documentation isn’t airtight, don’t expect the government to hand over a dime.

The 2025 government shutdown is now several weeks in, and small government contractors are feeling the squeeze. With entire agencies going dark, contracting offices shuttered, and invoices stuck in limbo, it’s no longer a question of “if” this will hit your bottom line. The real question is, what do you do next?

If you’re a small business counting on federal contracts, the current shutdown isn’t just frustrating, it’s unpredictable. Some agencies are still operating. Others are nearly frozen. And depending on where your work lives, or where your client agencies are headquartered, you could be sailing smoothly or dead in the water. Understanding these disparities is the first step in protecting your pipeline and pivoting wisely.

The Education Department is in shutdown mode, and if your business provides services to ED, this pause is more than political noise. It's operational chaos. With 87% of ED employees furloughed and a partisan legal battle brewing over internal communications, vendors in ed-tech, IT support, and student-aid services face serious disruption. Here’s what’s going on, what it means for you, and what steps you should take now.