Government Shutdown Jeopardizes State Work Safety Enforcement

States will reduce the number of active workplace safety inspections if the prolonged government shutdown continues, legal observers and one state agency have said.

State workplace safety enforcement efforts, unlike those at the federal Occupational Safety and Health Administration, have long been unaffected by government shutdowns.

However, as states fill the gaps in federally funded programs such as food aid and unemployment insurance and keep their workplace safety programs active without federal dollars, state OSH plans would need to cut the number of active workplace safety inspections done.

“When you start having that competition for state resources, then you will see the same kind of wind down that you’re seeing with regard to federal OSHA,” said John Surma, a shareholder in Ogletree Deakins’ Houston office. Small and mid-sized employers would be directly impacted as compliance assistance programs often offset the costs associated with managing their safety and health programs.

The crunch being felt by state workplace safety agencies reflects the broad impact the ongoing government shutdown—now the longest in US history—is having on state budgets.

Until Congress reaches a funding deal, no new money will flow to state programs. States haven’t received federal OSHA funds since September, prompting North Carolina to warn recently it could soon reduce safety inspections in the state.

State programs often use a mix of federal and state funds as OSHA provides up to 50% of funding to each of 29 state and territorial workplace safety programs. The makeup of each OSH state plan varies, but typically funds are used equally to staff positions and fund compliance assistance programs.

Kevin Beauregard, who previously chaired the Occupational Safety and Health State Plan Association, said larger OSH programs like those in North Carolina, California and Washington can tap state coffers for a little longer. But smaller state plans like New Jersey and Connecticut that cover public workers may need to examine contingency plans sooner.

That could include cutting back working hours for inspectors or pausing core duties until the government opens again, according to Beauregard, who once led North Carolina’s occupational safety and health division as deputy commissioner.

OSHA didn’t respond to a request for comment.

State Enforcement

Each state plan is different in how they allocate funds.

California, the largest state OSHA plan and often cited as a leader in agenda-setting efforts for worker protections, received more than $34 million in federal funds for fiscal year 2025 that make up for about 16% for its enforcement budget and 26% for its consultation services like education outreach and partnership programs.

Kentucky in fiscal year 2024 received $4 million in federal funding and North Carolina got $6.2 million . Both states matched the federal contributions, according to OSHA’s annual report on each program.

North Carolina said in a letter to Senate Democratic leadership it will be forced to furlough safety inspectors once it exhausts state funds.

Federal OSHA is operating with a fraction of its enforcement and investigations staff during the ongoing government shutdown.

OSHA has suspended nonessential enforcement efforts, keeping only 460 out of 1,664 staff members to continue investigations into situations deemed as emergencies. It ceased all compliance assistance, training classes, rulemaking, and other outreach programs.

State plans will follow in OSHA’s footsteps of sidelining enforcement if the government shutdown persists and their funding dries out as a result of the need to fill those gaps, according to Adam Finkel, a former regional administrator in charge of all OSHA operations in the Rocky Mountain region.

A downsize in workplace safety inspections doesn’t often hold the same political blowback weight as a cut to affordable food benefits—meaning this isn’t creating as much pressure to reopen the government, Finkel noted.

“People are not going to be clamoring for the government to come back because safety inspections are down, even if the workers are feeling it,” said Finkel.

Short-Term, Long-Term Risks

Lapses in federal appropriations in the past prompted OSHA officials to look at stepping in for cash-strapped states.

The 16-day government shutdown in 2013 raised the possibility federal OSHA would need to intervene if a state completely abandoned its program due to a lack of funding, Jordan Barab, who served as deputy assistant secretary for OSHA during the Obama administration, said.

“That was never tested, but I wouldn’t be surprised if they are getting to that point now,” Barab said. The shutdown ended before OSHA at the time had to act on such a plan, he noted.

Still, even amid the prolonged shutdown, it’s unlikely a state would completely abandon its entire enforcement program or plan.

OSHA can take steps to revert a state plan back to federal jurisdiction, but it would require formal action by DOL and is usually initiated as a result of the state failing to comply with obligations of keeping its plan “at least as effective” as federal OSHA. It would also require a public notice and comment period.

States are “more likely to limp along with half their money,” according to Finkel.