What the government shutdown taught us, and what leaders can do next
A guide to navigating the next disruption
Public service endures thanks to the people who keep showing up to work: Policy analysts, government workers and managers who carry heavy workloads without losing sight of whom they serve.
But the 2025 federal shutdown tested the limits of government and contractor operations. Today, I hear the same concern from government leaders across the country: we kept things afloat, but the strain was real. We can’t rely on luck next time.
The shutdown exposed long-standing vulnerabilities in systems, manual workflows and digital access. It was a reminder of how quickly uncertainty can ripple through programs that millions of residents rely on.
What the shutdown exposed about government efficiency
Government efficiency is often misunderstood as being synonymous with speed and cost control. And while those are critical goals, true efficiency is about continuity: the ability to deliver accurate and timely services even in uncharted times and conditions.
The federal shutdown highlighted how difficult that can be under certain conditions.
Many families relying on SNAP, WIC or child care faced confusion about when and how their benefits would be available. Even when processing continued, mixed messages and shifting timelines left many unsure about what to expect. That uncertainty made it harder to plan for groceries, appointments or child care they urgently needed.
These outcomes were also symptoms of deeper issues. Legacy systems limit the flow of data across programs. Fragmented eligibility processes create bottlenecks. Digital access, which residents increasingly expect as the default, often lacks connection to the underlying systems of record. When online portals can’t provide real-time updates or complete key tasks, people revert to call centers and paper. This increases demand right when agencies can least absorb it.
While challenging, the shutdown helps underscore why continuity and resident experiences must guide every modernization effort. It also reveals that small, steady improvements today can make a real difference the next time uncertainty hits.
Related: Navigating the New Era of Government Efficiency - Conduent
Modernizing operations for resilience and agility
If the shutdown revealed vulnerabilities, it also clarified the path to resilience. Modernization isn’t a one-time project. It’s a continual effort to improve how programs run and how residents engage with government.
Continuous transformation blends technology, process and human-centered design. Practical upgrades can begin anywhere: modern digital portals that free staff time, integrated eligibility systems that reduce rework, omnichannel communication that meets residents where they are, digital payments that accelerate disbursements and analytics that bring transparency to performance.
The measurable benefits are real. Faster decisions. Fewer errors. Better visibility into workloads. Reduced administrative burden. Clearer, more accessible experiences for residents.
At Conduent, we see these results every day as agencies move from siloed operations to more connected, resilient models. The goal isn’t to replace what works — it’s to strengthen it, layer by layer.
Medicaid modernization and work requirements
Nowhere is this shift more urgent than in Medicaid, where upcoming work and community engagement requirements will introduce new operational complexity. Meeting these expectations will require dependable eligibility verification, better data-sharing and data validation across systems and tools that help agencies prevent both fraud and inappropriate coverage loss.
Related: Why the smartest Medicaid states are modernizing in motion
Modern eligibility systems, automated workflows and self-service portals can streamline these interactions. Residents can upload documents when data validation is unavailable, check status or submit required information digitally, which decreases errors and helps ensure staff workloads stay manageable. Similarly, when systems communicate seamlessly, agencies reduce the risk of compliance gaps.
Preparing now, ahead of implementation timelines, is essential.
Program integrity and AI-driven fraud detection
AI-driven fraud detection is one of the most effective tools agencies can deploy. These systems analyze millions of data points to identify anomalies, flag unusual patterns and help teams prioritize cases that need human review. The result is more targeted oversight and better protection of funds that support essential services.
Sustainable efficiency is more than a performance metric. It is a commitment to building systems that remain reliable, equitable and resilient under pressure. By learning from the shutdown’s impact, modernizing key operations, preparing for Medicaid work requirements and adopting AI responsibly, agencies can protect essential services for the residents who rely on them most.
For leaders ready to move forward, Conduent brings the tools, expertise and partnership to help agencies strengthen efficiency and readiness for whatever comes next.
Conduent supports approximately 100 million U.S. residents across various government health programs, helping state and federal agencies deliver critical services while reducing costs, increasing program participation and improving compliance. Visit Conduent Government Solutions to learn more.
FAQ
How can government agencies improve efficiency after a major shutdown?
Agencies can boost efficiency by modernizing manual workflows, expanding digital access, and prioritizing upgrades that protect continuity during future disruptions.
What do Medicaid work requirements mean for state agencies?
They add new verification, reporting, and case management responsibilities, requiring updated eligibility systems and clearer communication with members.
How can AI-driven fraud detection support program integrity?
AI tools flag anomalies, score risk, and prioritize cases, helping agencies focus staff time where it matters most while protecting funds for essential services.