NAMA warns federal shutdown could delay approvals, contracts and rulemaking

The recent federal government shutdown is creating uncertainty for refreshment and convenience services operators, the National Automatic Merchandising Association (NAMA) noted in its weekly update to the industry, as agency operations and approvals are delayed.

The shutdown began early Wednesday after negotiations between President Trump and congressional leaders failed to reach a funding agreement. While essential services such as the military, Social Security and air traffic control continue, about 750,000 federal employees have been furloughed, and many agencies have halted nonessential operations.

NAMA noted that the disruption could slow several processes that affect operators, including SNAP and EBT approvals, rulemaking on nutrition and food labeling standards, and contract or permit reviews for operators serving federal buildings. The USDA has said food safety and inspection services will remain a priority, but staff reductions could still cause delays.

The association also highlighted potential economic ripple effects, as furloughed workers and reduced consumer spending can lead to lower sales for convenience services providers. During the 2018–2019 shutdown, similar disruptions delayed $18 billion in government spending and reduced GDP by $8 billion, underscoring the far-reaching impact of funding lapses on the broader economy.