Looming Government Shutdown Could Disrupt Chemical Regulation under TSCA

As Congress edges closer to another potential government shutdown, questions loom large about how federal agencies will manage critical regulatory responsibilities. For the U.S. Environmental Protection Agency (EPA), even a short lapse in appropriations and critical staffing could have significant consequences for the implementation of the Toxic Substances Control Act (TSCA).

TSCA is built around statutory deadlines. For example, there are strict timelines for new chemical reviews under Section 5 and for ongoing risk evaluations and risk management rules under Section 6. EPA is also subject to several court ordered deadlines as a result of settled lawsuits. A shutdown would likely halt or at the least slow many of these activities, creating ripple effects that extend well beyond the duration of the funding lapse. Unlike discretionary programs, many of EPA’s core chemical safety functions cannot simply be paused without consequence.

Perhaps the most immediate impact would be on the processing of premanufacture notices (PMN) and other new chemical submissions under TSCA Section 5. EPA will stop reviewing all cases when it runs out of operating funds. While the Central Data Exchange (CDX) will remain open and cases can still be submitted, nothing will move forward until funding is restored and employees are back at their jobs. In prior shutdowns, EPA has issued Federal Register notices extending review periods, but even if review periods expire, it is highly unlikely fees would be refunded. Importantly, companies may not proceed to market until EPA’s review is complete. For readers seeking to calculate what damage a delay will cause, a useful rule of thumb is that however long the shutdown lasts, restarting EPA’s processes will take at least as long as the shutdown. If the shutdown is brief, a rule of thumb is to expect about half the time to get back to full strength. For example, a two-week shutdown could mean an additional week to restart normal operations as returning staff sift through backlogged e-mails as well as catching up on new submissions.

During past shutdowns, EPA furloughed most enforcement staff. For the chemical sector, this meant fewer inspections, reduced oversight, and uncertainty about how compliance obligations would be treated. While statutory requirements remain in force, a reduction in enforcement presence can create ambiguity for regulated entities and frustration for communities seeking accountability. Regulated entities should recognize that EPA can allege violations up to five years after an infraction and strive to comply with applicable regulations at all times.

The 2018–2019 shutdown provides a telling precedent, as the only other shutdown during the first Trump Administration, and the longest government shutdown in American history, for a total of 34 days. During that 34-day lapse, EPA’s chemical program ground to a near halt, creating a backlog that took months to resolve. Even shorter shutdowns have been disruptive, illustrating how quickly TSCA’s tight timelines can fall out of sync when staff are furloughed and processes are paused. The Office of Pollution Prevention and Toxics (OPPT) may be able to operate for some period of time past the funding lapse. Funding is likely limited, however, and if a shutdown is prolonged, EPA’s TSCA activities will likely cease.

States that administer their own chemical safety statutes or enforcement programs may continue operating, but without federal coordination causing the landscape to become uneven. This patchwork could exacerbate compliance challenges, particularly for companies that operate across multiple jurisdictions.

For chemical manufacturers, importers, and downstream users, shutdown-related delays can translate into lost time, higher costs, and competitive disadvantages. Companies awaiting EPA approvals may face production slowdowns or missed opportunities, while other stakeholders may raise concerns about stalled progress on addressing existing chemical risks.

The prospect of another government shutdown underscores a fundamental tension in TSCA implementation: industry and communities alike rely on timely, predictable regulatory decisions. When appropriations lapse, that certainty evaporates, leaving companies, regulators, and the public health community in limbo. As Congress negotiates over funding, stakeholders in the chemical regulatory space will be watching closely — and planning for potential delays.