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WASHINGTON — The U.S. federal court system will begin furloughing employees and curtailing non-essential operations on Monday after depleting funds reserved to maintain paid operations during the government shutdown, according to an internal judiciary memorandum issued Thursday.

Judge Robert J. Conrad, Jr., Director of the Administrative Office of the U.S. Courts, notified all federal judges, circuit executives, and court administrators that Phase 2 of the appropriations lapse takes effect at midnight October 20, 2025. Employees will receive furlough notices Monday morning before orderly shutdown activities commence.

The funding crisis hits the federal judiciary significantly harder than during previous government shutdowns. Court units and federal public defender organizations exhausted contingency funds after operating just 17 days into fiscal year 2026 without congressional appropriations.

Shutdown Operations and Excepted Activities

During Phase 2, judiciary entities must operate according to pre-approved shutdown plans and perform only activities "excepted" under the Anti-Deficiency Act to avoid criminal violations of federal spending law. The Act prohibits federal agencies from incurring obligations or making expenditures exceeding available appropriations.

Although the Judiciary Integrated Financial Management System posted budget allotments equivalent to 50 percent of the FY 2026 interim financial plan on September 30, those funds may only record obligations for excepted activities—not sustain general paid operations.

The Administrative Office conducted emergency training on October 15 to help courts develop and execute Phase 2 shutdown plans. Conrad's memorandum emphasizes that excepted activities typically include constitutionally mandated functions such as criminal proceedings, prisoner habeas corpus petitions, and cases involving imminent threats to life or property.

Impact on Court Operations and Civil Litigation

Civil litigation across federal district courts faces mounting delays as non-essential proceedings halt. Civil trials, motion hearings, and discovery deadlines in cases without constitutional urgency will be postponed indefinitely until appropriations resume.

Criminal prosecutions will continue under excepted-activity designations, ensuring Sixth Amendment speedy trial rights and maintaining public safety operations. Federal public defender organizations remain operational to fulfill constitutional requirements, though staffing levels may be reduced.