Update on ILP Funding and Questions on Government Shutdown

Dear Independent Living Community,

We are writing to provide you with another funding update for both Fiscal Year (FY) 2025 Part C grants and Congressional Appropriations of Fiscal Year 2026 funds.

The most recent Continuing Resolution provided level-funding for both Part B and Part C Independent Living Program grants for FY 2025. Part B and Part C grant awards are distributed with different grant cycles.

Part B awards run alongside the Federal Fiscal Year. Part B funds awarded for FY 2025 have already been distributed. The next grant cycle for Part B awards begins on October 1, 2025. Those FY 2026 funds have not yet been appropriated by Congress and Congress is struggling to come to an agreement on the budget. There is a high possibility that we will be experiencing a government shutdown.

Part C grant awards begin on September 30, 2025. As of today, September 25, 2025, Notices of Award for Part C’s FY 2025 grant cycle have not been released.

Federal Fiscal Year 2025 Funding and Notices of Award for Part C Grant Cycle Beginning on September 30, 2025

NCIL met again with the Administration for Community Living (ACL) this week on the status of the Notices of Award for Federal FY 2025 Part C grants.

ACL informed us that the formulas have been completed, the decision memo has been signed by leadership, and the awards are still expected to go out this week. If you have questions on your funding amounts, you can reach out to your program officer, and they are able to tell you the amount you should expect to receive.

Until the Notices of Award are released, we will check in with ACL daily and push for the next funding cycle awards to be distributed in a timely manner. Please let Jessica Podesva know if you receive your Notice of Award.

What You Can Do

We encourage you to reach out to your members of Congress to keep them updated on the status of the awards, especially if this lateness is causing your Center any harm. If you reach out to your members of Congress, please let NCIL Director of Advocacy and Public Policy Jessica Podesva know.

Federal Fiscal Year 2026 Funding and Congressional Budget Update

Both the House and Senate budget markups for the U.S. Department of Health and Human Services propose that the Independent Living Program line item is to be level-funded at a total of $128 million, which includes both Part B and Part C awards. Next, both the House and Senate must pass the budget, then it must go to the President’s desk for signature.

Congress is struggling to come to an agreement to fund the government by the September 30 deadline. It is most likely we will be looking at a Continuing Resolution or government shutdown.

If there is a shutdown, here is how it will affect both Part B and C Grants: 

Part C Grants: If Federal FY 2025 Notices of Award are released by the deadline, you should be able to draw down your Part C funds without issue.

Part B Grants: Since Part B grant cycles run alongside the Federal Fiscal Year, Part B Notices of Award will not be able to be distributed until Federal FY 2026 funds are appropriated by Congress. If there is a shutdown, Part B funds will not be able to be released until Congress passes a budget.

If you have any questions, please contact NCIL Director of Advocacy and Public Policy Jessica Podesva at jessica@ncil.org.