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Government Shutdown Begins: Impacts on Recreation, Manufacturing, and Trade

| General Government Relations

The federal government shut down early this morning, October 1, after Congress failed to agree on a short-term spending bill. This marks the first shutdown of the Trump administration’s second term and comes amid disagreements over health care spending and broader budget priorities.
What the White House and Republican Leaders Are Saying
Vice President JD Vance, speaking on Fox & Friends this morning, attributed the shutdown to Senate Democrats, calling it a “policy dispute” over health care programs. Vance emphasized that the White House is willing to negotiate on lowering health care costs but only after the government is reopened.
He also noted the consequences of a shutdown: delayed paychecks for military service members and federal workers, potential TSA and air traffic control slowdowns, and disruptions to food assistance programs. Vance warned that the lapse in funding comes at a critical time, with hurricane season underway and the National Flood Insurance Program potentially affected.
Congressional Republican leaders say their priority is reducing federal costs, and they argue broader policy debates should wait until the government is reopened.
What Democrats Are Saying
Democratic leaders argue that the shutdown is the result of Republican resistance to maintaining health care protections for Americans. Senate Democratic Leader Chuck Schumer (D-NY) and House Democratic Leader Hakeem Jeffries (D-NY) criticized President Trump and congressional Republicans for allowing the government to close, saying it will make life more difficult for working families.
Democratic leaders argue that Republicans currently control the House, Senate and White House and places responsibility on Republicans to resolve the funding standoff. Republicans counter that Democrats are using the shutdown to push health care spending and other provisions they believe don’t belong in a short-term funding bill.
Impacts on Recreation Access
A government shutdown has immediate implications for public lands and waters that support recreational boating and outdoor access. President Trump has threatened mass layoffs, so some implications of a prolonged government shutdown remain unknown. Based on the most recent agency contingency plans and prior shutdowns:
  • National Park Service (NPS): Most parks will close, with trails, roads, and open-air sites remaining physically accessible but with limited or no services. Facilities such as visitor centers, restrooms, and parking lots will be locked.
  • U.S. Forest Service (USFS): Day-to-day recreation management operations requiring staff will be suspended. Some campgrounds and sites may remain open using Federal Lands Recreation Enhancement Act (FLREA) funds, while outfitter and guide permits may continue if private safety services are provided.
  • Bureau of Land Management (BLM): Public lands remain accessible, but visitor centers close. Campgrounds, boat ramps, and recreation sites may remain open, though services like restrooms and water may be unavailable.
  • U.S. Army Corps of Engineers (USACE): Recreation sites such as campgrounds and day-use parks are expected to close entirely, based on precedent. Concessionaire-operated facilities on leased land may remain open.
  • U.S. Fish and Wildlife Service (FWS): Wildlife refuges will generally close, but some areas such as walking trails may remain accessible without staff support.
For boaters, this could mean reduced access to federally managed waters, campgrounds, and facilities.
Impacts on Manufacturing and Trade
The shutdown also creates challenges for U.S. marine manufacturers and the supply chain:
  • Consumer Confidence: Past shutdowns have shown that prolonged uncertainty weakens consumer confidence. The Labor Department indicated it will not release scheduled monthly nonfarm payrolls report, which could rattle U.S. markets. For discretionary markets like boats and outdoor recreation equipment, that can translate into delayed purchases and softer demand.
  • Permitting and Rulemaking: Federal agencies suspend most non-essential rulemaking and permit approvals. This includes delays in environmental reviews, immigration-related approvals, and other regulatory processes important to manufacturers.
  • Small Business Financing: The Small Business Administration (SBA) halts approvals of new SBA-backed federal loans—tools used by many small boat builders and suppliers.
  • Trade Operations: Customs and Border Protection (CBP) will continue cargo processing and inspections.Tariff collection will continue as this remains a top priority for the administration. The Department of Commerce has historically furloughed staff and suspended key functions, which could cause delays for marine manufacturers reliant on imported materials.
  • Workplace Regulation: OSHA suspends most compliance and enforcement activities, aside from inspections tied to imminent dangers or fatalities. Routine inspections, training, and outreach are paused at the federal level, however state-run OSHA programs continue operating.
  • Federal Courts: Courts can continue operating for about two weeks using reserve funds but may face reduced hours and delayed proceedings if the shutdown continues. Because the length of the shutdown is indeterminable, this could impact the IEEPA case.
What This Means for NMMA Members
The shutdown could impact NMMA members in four ways:
  1. Boater Access to Public Waters: With reduced federal staffing, boat ramps, marinas, and campgrounds may close or operate with limited services.
  2. Keeping U.S. Marine Manufacturing Competitive: Delays in permitting, financing, and trade proceedings may create uncertainty for manufacturers, particularly small businesses.
  3. Recreation Infrastructure: Federal maintenance, grants, and safety programs could be disrupted, delaying projects critical to boaters.
  4. Driving Innovation and Sustainability: Rulemakings and regulatory reviews may stall, affecting timelines for marine technology development and environmental permitting.
What’s Next
Negotiations are ongoing. President Trump and congressional leaders met yesterday but remain at an impasse. The White House insists it will not reopen the government under the current Democratic proposals, while Democrats say they are ready to strike a bipartisan deal if Republicans engage in good-faith negotiations.

NMMA will continue to monitor developments and advocate for policies that protect boater access, support U.S. marine manufacturing, sustain recreation infrastructure, and encourage innovation. We are also keeping policymakers informed about how the shutdown impacts our members, ensuring their voices are part of the debate. NMMA members will be kept informed as the situation evolves. Please contact NMMA staff at [email protected] if your operations are impacted by the shutdown.