Federal shutdown could hurt government services like WIC, SNAP in Indiana

The Indiana Statehouse and U.S. Capitol domes. A federal shutdown in Washington D.C. could hit some of Indiana’s poorest who rely on government food benefits. (Photos by Whitney Downard/Indiana Capital Chronicle and Shauneen Miranda/States Newsroom)

In the coming days, a food aid program that helps millions of mothers and young children will likely run out of money. States like Indiana must use their own dollars to keep funds flowing to families or let it lapse, a move that could cut benefits for the 157,000 Hoosiers who rely on the Special Supplemental Nutrition Program for Women, Infants and Children, or WIC.

But the Indiana Department of Health declined to share specifics about how WIC would operate in the state, saying that “funds have been identified to keep WIC operating as normal for the foreseeable future.”

“IDOH continues to monitor the situation, and WIC is operating as normal,” said Greta Sanderson, the chief communications officer for the agency.

But advocates warn of the potential impacts to Hoosier mothers — including those who are pregnant — and children relying on government services like WIC if such funds ran out.

“It’s providing nutrition to a population where nutrition is critical for development,” said Emily Weikert Bryant, the executive director of Feeding Indiana’s Hungry. “… no matter what, our member food banks will continue to be there for communities and for our neighbors who are in need of food assistance.”

Bryant said other food benefits under the Supplemental Nutrition Assistance Program, or SNAP, appeared to have steady funding in the coming weeks alongside WIC. However, SNAP is reportedly also running out of money even as the Trump administration explores using tariff revenue to fund WIC. 

In a preliminary estimate on the U.S. Department of Agriculture’s website, 156,752 Hoosiers received benefits from WIC in May 2025, the latest data available. Of those, more than half — 87,000, or 56% — were children while infants and mothers each made up 22% of Indiana’s total, or roughly 35,000. 

Between October 1, 2024 — the beginning of the federal fiscal year — and May, the federal government allotted nearly $80 million to Indiana’s WIC program, $24 million of which went to administrative costs. 

Some states are reportedly chipping in their own funds to keep the program running, including Mississippi, Colorado and Connecticut. Other states, like Washington, say they don’t have money available.

The program is one of thousands funded by the federal government, which has had its funding frozen since Oct. 1. Most government offices continue to function as normal during the partisan budget standoff, but cracks are beginning to show — and Hoosiers will be dealing with the consequences. 

Already, a key federal jobs report was delayed and fewer staff are at the state’s only federal park in northern Indiana, though it remains open through the shutdown.

Other programs impacted by the shutdown

Indiana is slightly more dependent on federal funding than the average state, with 40% of the state’s budget coming from Washington, D.C. compared to 36% for all 50 states, according to Pew. The nonprofit notes that federal programs have rolling deadlines for funding to expire, meaning that some programs don’t need additional appropriations for a few more years.

Gov. Mike Braun’s Deputy Chief of Staff for Communications Molly Craft spoke generally about the federal shutdown’s impact on state services last week: “We are in good shape.”

“Let’s see how long this goes. We have smart people leading different agencies — we’ll work out with them the details to try to make sure Hoosiers are served well, despite whatever may happen in D.C.,” she said.

Indiana education officials said the immediate effects of a federal government shutdown on K-12 schools will likely be limited — at least at first.

Courtney Bearsch, a spokesperson for the Indiana Department of Education, said the department “is continuing the normal operations of programs funded by federal grants,” given that a majority of IDOE’s federal funding is already authorized for the 2025-2026 school year. 

“If the shutdown lasts for an extended period,” Bearsch added, “IDOE will re-evaluate the situation, along with our state-level partners.”

Because most federal grants to schools were awarded over the summer, the U.S. Department of Education expects minimal disruption to day-to-day district operations. 

Federal officials said Title I funds, which support schools with higher concentrations of students in poverty, and funding for the Individuals with Disabilities Education Act will continue to flow. But the agency will halt new grantmaking, pause its advisory and regulatory activities, and stop investigations into alleged civil rights violations during the shutdown.

The federal education department will also continue processing Free Application for Federal Student Aid (FAFSA) forms, which colleges and universities rely on to assemble financial aid packages.

Still, the pause in government services could be felt sooner in certain Indiana districts that rely on Impact Aid — a federal program that supports school systems on or near federal lands, such as military installations, which can’t be taxed locally. Those payments are made directly to schools, not through the state, and typically arrive later in the calendar year. 

Bearsch said IDOE is not notified when schools receive Impact Aid payments, but noted that last year’s funding went out in December.

The National Association of Federally Impacted Schools warned on Friday that “districts are facing an immediate and significant cash-flow crisis” if payments are delayed.

Six Indiana school districts received Impact Aid in fiscal year 2025, totaling more than $900,000, according to NAFIS.

Those included: Bartholomew Consolidated School Corp., $261,886; Bloomfield School District, $23,669; Loogootee School Corporation, $303452; Madison Consolidated Schools, $81,796; Perry Central Community School Corp., $167,208; and South Ripley Community School Corp., $76,487. 

It’s not clear how much funding districts are expecting for the current fiscal year.

Federal employees

But, as Pew notes, shutdowns also halt government services such as rulemaking, grantmaking and technical assistance — impacting the employees tasked with reviewing Medicaid waivers, transportation planning and environmental grants.

At least 600,000 federal employees could be suspended, depending on each agency’s definition of who qualifies as essential. Indiana has roughly 25,000 federal employees within its borders. 

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Many employees are expected to work without pay, including the country’s troops, immigration agents and air traffic controllers. Friday’s paycheck — which covers the pay period from Sept. 24 to Oct. 7 — was the first partial payment since the shutdown began.

And the Trump administration started permanent layoffs on Friday, including:

• Health and Human Services: between 1,100 and 1,200 employees

• Housing and Urban Development: 442 employees

• Homeland Security: 176 employees

• Treasury: 1,446 employees

Staffing issues at several airports have caused delays nationwide, from California’s Hollywood Burbank Airport to Newark, New Jersey. Some airports with zero flight controllers for several hours cancelled flights.

Though the Indianapolis airport hasn’t yet had a delay reported to the National Airspace System due to its staff, any change in any part of the greater system has a ripple effect. 

In past shutdowns, employees who are furloughed were guaranteed backpay — but a draft White House memo shared with Axios floats the possibility that the Trump administration may reverse that precedent. 

Bryant, with Feeding Indiana’s Hungry, pointed to increasing levels of food insecurity, saying that the greater Feeding America network — whose donation page explicitly mentions supporting families during the shutdown — anticipates increased demand in the coming weeks.

“This shutdown creates uncertainty for millions of civilian and military federal employees and employees of federal contractors,” said Bryant. “All of whom are at risk of paycheck disruptions and maybe not getting back pay.

“Many of these hard-working folks are just one paycheck away from needing support from their local food bank or pantry.”

Families in need can download the Community Compass app to locate food resources, including free groceries or meals, stores participating in SNAP, WIC clinics and more.

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