Government shutdown could delay clean energy guidance, permitting: report

Lamar Johnson | Source: Utility DIVE | Posted 10/06/2025

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Shutdown plans could become hard to implement as agency staffing levels “are significantly lower than at the beginning of the year,” said sustainable finance company Crux.

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The recent federal government shutdown is expected to impact clean energy project developers and corporate tax credit buyers, as highlighted by a report from sustainable finance company Crux. While the Internal Revenue Service (IRS) is likely to maintain normal operations for a short shutdown, other agencies responsible for clean energy grants and permitting will face immediate disruptions. The uncertainty surrounding the duration of the shutdown complicates predictions, with the last significant shutdown lasting 35 days.

Crux notes that essential functions related to public safety will continue, but many activities funded through annual appropriations will be paused. This includes permitting and grantmaking processes at agencies like the Department of Energy and the Environmental Protection Agency. Although the IRS will likely continue to operate, delays in guidance from other agencies could hinder clean energy developers. The report emphasizes that energy-related functions are at the highest risk of disruption during the shutdown, particularly if staffing reductions are implemented.

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Government shutdown could delay clean energy guidance, permitting: report

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