Buzz
As the clock strikes midnight on Sept. 30, marking the beginning of the new fiscal year on Oct. 1, government funding runs out. If Congress doesn't take action in the coming days, millions of Americans could experience the direct financial impact of a government shutdown. The White House issued a dire warning this week about the risks to critical federal programs, and the threat of delayed paychecks for hundreds of thousands of federal employees. Here's what a potential shutdown could mean for you.
Federal Workers
During a shutdown, most government workers will be furloughed, meaning they won't be working. However, those in essential roles—such as air traffic controllers, law enforcement, prison staff, border agents, TSA personnel, hazardous waste handlers, and food safety inspectors—will continue working. The U.S. Postal Service will also remain operational. Even furloughed employees will receive backpay once the shutdown ends.
Exploring the world around us through travel is always an exciting adventure.
Should the government shut down, expect closures of national parks, zoos, and museums. If you're waiting for your international travel passport, be prepared for additional delays, especially if your application wasn't submitted well in advance.
While airports will remain operational, certain 'non-essential' staff members may be placed on furlough.
Social security
Social Security payments will continue as scheduled, but those looking to sign up for benefits must wait until furloughed workers return to their duties.
Medicare and Medicaid will continue functioning, but new applicants may face delays due to insufficient staff to handle the increased paperwork.
Food stamps
The Supplemental Nutrition Assistance Program (SNAP) operates independently of annual spending bills, so if you're already enrolled, your benefits will continue. However, new applicants may experience delays in receiving their benefits.
Unemployment insurance
Although unemployment insurance is state-funded, it relies on federal administrative support. While states are obligated to continue payments, there could be delays or reductions in benefits depending on the shutdown's duration. If necessary, states can request Title XII advances from the federal government to maintain payments.
Homebuying
Homebuyers will be looking at even bigger headaches than they already are these days. Lenders need the IRS to confirm the buyer’s income, while the SSA confirms their identity. This means any hope of closings will be delayed, as well as lost bids and overall weaker offers.
Small businesses
Small business loan approvals will also be halted or slowed during a shutdown as both the IRS and Small Business Administration would close down (or be severely understaffed) and not able to process the requests.
Military
Military personnel are exempt from furloughs in the same way other government workers might be, although some Department of Defense staff may still be impacted. The Department of Veterans Affairs is unaffected by the shutdown, as it receives its funding a year in advance.
While essential medical care for active service members will continue, non-essential procedures may be postponed. Service members are generally less affected, but some delays and inconveniences could still arise.
Investors
A government shutdown means the temporary closure of the Commerce and Labor Departments, disrupting economic reports that investors rely on. The stock market can also react nervously during such events. Though these effects aren't permanent, they are tangible and significant.
