The Department of State is issuing a special notice regarding the impact of a lapse in appropriations that began on October 1, 2025, affecting contracts and federal assistance awards, including those from the U.S. Agency for International Development (USAID). This guidance outlines the implications of the Antideficiency Act, which prohibits the incurrence of obligations without enacted appropriations, potentially leading to cancellations, postponements, or terminations of planned procurements and grants, as well as delays in payments. Contractors and recipients are advised to continue complying with all contract terms unless formally notified otherwise, and the Department will communicate resumption plans once a Continuing Resolution or full-year appropriation is enacted. For further inquiries, contractors and recipients should refer to their respective contracting or grant officers.