The U.S. federal government is potentially facing a shutdown starting Sunday, October 1, 2023, with Congress having until September 30, which is the end of the fiscal year, to enact appropriations for government agencies. The closure risks having significant effects on certain legal proceedings, notably those relating to antitrust matters and filings with the Committee on Foreign Investment in the United States (CFIUS).
A shutdown could lead to furloughs within the Department of Justice (DOJ) and Federal Trade Commission (FTC) that would result in delays of antitrust investigations and trials. According to existing plans, the DOJ Antitrust Division and the FTC would continue some activities necessary to protect ongoing litigation, though some staff could be furloughed and activities related to merger and civil non-merger investigations could be halted.
The CFIUS may also see its review and investigation processes disrupted during a shutdown. The statutory timelines for CFIUS reviews and investigations are unlikely to be extended, but investigations may proceed at a slower pace due to reduced staffing levels.
Both scenarios could have significant implications for global corporations and law firms dealing with antitrust or CFIUS matters. It is therefore imperative that these entities consider the impact a shutdown could have on their legal proceedings and act accordingly.
More information can be found in the detailed analysis by the legal professionals at Allen & Overy LLP, accessible via this link.