The federal government has entered a shutdown, halting appropriations and furloughing thousands of federal employees. For defense contractors, the natural question is: does this change the timeline or obligations for Cybersecurity Maturity Model Certification (CMMC) compliance?
The short answer: no.
Shutdowns create operational uncertainty, including delays in contracts, guidance, and oversight. But they do not change legal obligations. Statutes and regulations remain binding, contractual clauses still apply, the False Claims Act (FCA) continues to create liability, and the Department of War (formerly DoD) will resume enforcement once appropriations are restored. Contractors who treat the shutdown as a pause in compliance risk falling behind both legally and competitively.
Regulatory Continuity: Laws Do Not Pause
The November 10, 2025 Effective Date Stands
On September 10, 2025, the DoD finalized the CMMC Final Rule, amending the Defense Federal Acquisition Regulation Supplement (DFARS). The rule becomes effective November 10, 2025 (Federal Register).
That means that beginning on this date, DoW has the authority to insert CMMC clauses into solicitations and contracts. The government shutdown does not alter that effective date. Regulations finalized through the rulemaking process take effect as scheduled unless specifically amended or stayed, and a funding lapse does neither.
Why Laws Continue During a Shutdown
The Antideficiency Act governs government shutdowns. It prevents federal agencies from obligating funds without appropriations, which is why agencies cannot award new contracts, issue modifications, or exercise options during a lapse.
But the Act does not suspend or repeal existing statutes or regulations. Laws passed by Congress remain in force until repealed, and regulations published in the Code of Federal Regulations remain valid until formally amended or rescinded. A shutdown limits agency spending authority; it does not erase the legal framework.
As Mayer Brown explains, shutdowns affect contract awards, modifications, and options dependent on funding. But existing contracts may continue if already funded, multi-year, or deemed essential (Mayer Brown, Government Shutdown: A Contractor’s Guide).
In practice: appropriations lapses block new funding actions, but they do not erase obligations embedded in regulations or in signed contracts.
Contractual and Legal Exposure
False Claims Act Liability Remains
The False Claims Act is one of the government’s strongest enforcement tools, and the Department of Justice has an initiative specifically directed towards prosecuting cybersecurity fraud among contractors (DOJ Press Release).
Recent cases show DOJ’s willingness to pursue cybersecurity misrepresentation. In April 2025, Raytheon and its subcontractor Nightwing Group agreed to pay $8.4 million to resolve allegations of misrepresenting compliance with federal cybersecurity requirements. The shutdown does not shield contractors from similar exposure; it only delays investigations.
Executive-Level Consequences
The CMMC Final Rule requires an Affirming Official to personally attest to compliance status. That attestation is legally enforceable under the FCA. This means executives who sign off on compliance without defensible evidence could face personal liability.
For business leaders, the stakes are high:
- Loss of contract eligibility once CMMC clauses are inserted.
- Reputational damage if primes or DoD discover weak compliance posture.
- Personal risk for executives who sign off without documentation.
Operational Disruption vs. Strategic Opportunity
Operational Uncertainty Is Real
Shutdowns disrupt the contracting environment. Contractors should expect:
- Delays in new awards and modifications.
- Slower or halted agency guidance.
- Backlogs in oversight once agencies reopen.
But Legal Certainty Prevails
What does not change is the legal framework:
- The CMMC Final Rule becomes effective November 10, 2025 (with phased rollout).
- DFARS and FAR clauses remain enforceable in existing contracts.
- FCA liability persists and attaches to misrepresentations made during the shutdown.
- DoD’s enforcement authority remains intact and resumes once appropriations are restored.
Strategic Choice: Use the Downtime Wisely
Shutdowns separate reactive contractors from proactive ones. The firms that use this downtime to close gaps, run self-assessments, and document evidence will be better positioned when enforcement resumes. Those who delay may face a surge of enforcement activity.
For executives, the message is clear: treating the shutdown as an excuse to defer compliance is a business risk, legal risk, and competitive risk. Treating it as an opportunity to get ahead is a strategic advantage.
What This Means for Contractors
The government shutdown has created real operational uncertainty. But it has not changed the law. The CMMC Final Rule, False Claims Act, and DoW enforcement activity remain binding despite the lapse in funding.
For defense contractors, the choice is clear. Shutdowns create uncertainty in Washington, but not in your compliance obligations. Contractors that stay the course will avoid liability, protect executives, and gain a competitive edge when awards resume.
Use this time wisely. Run a free CMMC Level 1 Self-Assessment with Opsfolio now to ensure your compliance program is defensible, documented, and ready.