U.S. Federal Courts Face Federal Courts Money Shortage and Furloughs

Intermediate | October 26, 2025

✨ Read the article aloud on your own or repeat each paragraph after your tutor.

The Funding Crunch and Federal Courts Money Shortage

On October 17, 2025, the Administrative Office of the U.S. Courts announced that the federal court system is running out of funds and will begin furloughing some staff as early as Monday. (Reuters)
This comes amid the ongoing federal government shutdown that began on October 1, when Congress failed to pass the required appropriations. (Reuters)
The courts had been operating using court-fee balances and other non-appropriated funds, but those resources are now exhausted. This has created a federal courts money shortage that threatens to disrupt basic court operations. (Axios)

What the Courts Can (and Can’t) Do Now

Under the Antideficiency Act, federal agencies (including the judiciary) cannot spend money once appropriations lapse—except for “exempted” activities like those tied to life-and-death cases or constitutional mandates. (USCourts.gov)
Judges and justices are constitutionally guaranteed their pay, but many support staff, probation officers, and court-appointed lawyers are not. They could be furloughed or asked to work without pay. (Reuters)
While the courts remain open, civil litigation and administrative work are likely to slow or be delayed, adding stress to a system already under pressure. This growing federal courts money shortage could cause long-term strain on the judiciary if funding isn’t restored soon.

Why This Matters for Business Professionals and English Learners

For business professionals: Corporations, legal teams, and vendors who rely on federal-court timelines may face unexpected delays, affecting contracts, compliance, litigation, and project planning.
For English learners in business or law-adjacent roles: This story introduces terms like “furloughs,” “non-appropriated funds,” “exempted work,” and “judiciary budget shortfall”—vocabulary you may encounter in global business contexts or negotiation settings.
For anyone working internationally: It’s a real-world case of how funding shortfalls and government shutdowns ripple through the business ecosystem and impact services you might depend on.

What’s Next: Risks and Potential Outcomes

If funding isn’t restored soon, the judiciary may escalate furloughs, delay more cases, reduce operations, or even halt jury programs temporarily. Multiple courts have started preparing “orderly shutdown” plans. (Reuters)
Companies may need to build in contingencies—for example, legal teams could anticipate slower motion practice timelines, or vendors may require contract clauses for “court-delay risk.”
For learners: you could bring this topic into a business-English role-play: “What happens to my company’s contract if the federal court is delayed by a shutdown?”

Vocabulary

Furlough (noun) — a temporary leave of employees without pay.
- Example: “Staff were told to expect furloughs if funding runs out.”
Appropriation (noun) — money set aside by a government for a specific purpose.
- Example: “Congress failed to pass the appropriation needed for the court system.”
Non-appropriated funds (noun) — funds that do not require annual congressional approval.
- Example: “The courts used non-appropriated funds to keep operating.”
Exempted work (noun) — activities permitted under the Antideficiency Act despite a funding lapse.
- Example: “Criminal trials are considered exempted work for court staff.”
Budget shortfall (noun) — a situation when spending exceeds available funds.
- Example: “The judiciary faced a budget shortfall at the start of the shutdown.”
Litigation (noun) — the process of taking legal action.
- Example: “Civil litigation may slow because of the funding lapse.”
Contractor (noun) — an individual or company hired to perform services.
- Example: “Court-appointed lawyers working as contractors may not be paid.”
Delays (noun) — instances when something happens later than planned.
- Example: “Clients should expect possible delays in federal court cases.”
Shutdown (noun) — a period in which government operations stop or slow because of funding failure.
- Example: “The government shutdown has forced the courts to plan for furloughs.”
Contingency plan (noun) — a prepared plan for dealing with an unexpected event.
- Example: “Businesses might implement contingency plans in light of court delays.”

Discussion Questions (About the Article)

What caused the current federal courts money shortage?
Which staff members are most affected by the furloughs?
How does the Antideficiency Act restrict court operations during a funding lapse?
Why might businesses need contingency plans because of court delays?
What could happen if the funding shortage continues for several more weeks?

Discussion Questions (About the Topic)

How do government shutdowns affect businesses outside of the public sector?
What steps can organizations take to prepare for legal or financial delays?
Have you ever experienced a delay or disruption due to government funding issues?
How can English learners use this story to expand their professional vocabulary?
Should the judiciary have an independent funding mechanism to avoid shutdowns like this?

Related Idiom

“On thin ice” — in a risky or precarious situation.
Example: “With the courts operating on scraps of funding, business contracts tied to federal litigation are on thin ice.”

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This article was inspired by: Reuters – “US courts set to run out of money, begin furloughs as shutdown lingers”