It's a familiar playbook, although there appears to be less planning this year than in the past
Despite, or perhaps because of, persistent efforts in Congress, the federal government ran out of money at midnight and is now officially out of action. The Senate adjourned late Tuesday night and the Office of Management andBudget issued a memo to executive branch agencies instructing them to "execute their plans for an orderly shutdown."
Leaving aside the he-said, she-said political jockeying, here is a look at the immediate effects on everyday consumers.
What will not be affected
- Social Security payments will continue as usual, including Supplemental Security Income
- Medicare, Medicaid, and disability insurance will be largely unaffected by a shutdown lasting less than three months
- VA Medical Centers, Outpatient Clinics, and Vet Centers will remain open and provide all services
- The majority of veteran benefits and military operations will continue to be funded
- Visa and passport operations are fee-funded and not normally impacted
What will be affected
- Around 900,000 federal workers willbe furloughed without pay, while another roughly 900,000 deemed essential would work without immediate pay
- Travelers could experience longer airport lines, muddled itineraries, and National Park closures, including the Grand Canyon
- New Social Security benefit verification and issuing of new cards pause during a shutdown, causing delays for new recipients
- Food assistance programs like WIC and SNAP could face disruptions
- Immigration court cases on the non-detained docket will be rescheduled to a later date
The shutdown was scheduled to begin at 12:01 AM and will continue until Congress passes new legislation. The most immediate impact will be on federal employees going without pay and reduced government services, while major benefit programs would largely continue operating.
DOGE, immigration efforts play a role
The effect on the economy may be greater than during previous shutdowns, thanks to the cost-cutting efforts of Elon Musk's DOGE program and the accelerated detention and deportation of undocumented workers, who make up a large percentage of the agricultural and hospitality workforces.
Some areas are being harder hit than others.The Washington, D.C., regions unemployment rate has climbed more than eight times faster than the national rate since January, according to a Brookings Institution analysis. Federal job losses have accelerated, while the share of residents with low credit scores and homes for sale has grown more quickly than elsewhere in the country. Private sector job growth has stalled, leaving the economy with little cushion against government cuts.
Facing the consequences
A federal government shutdown has wide-ranging effects, because funding for many agencies halts until Congress approves a budget. Heres a breakdown of the biggest impacts Americans typically feel:
1. Federal workers and contractors
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Furloughs: Hundreds of thousands of federal employees are sent home without pay until funding is restored.
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Essential workers still work: Military personnel, TSA agents, air traffic controllers, and federal prison guards must keep working, but their pay may be delayed.
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Contractors hit hardest: Private contractors for the government often dont receive back pay after a shutdown ends.
2. Government services and benefits
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Social Security, Medicare, Medicaid: These programs keep running, since theyre mandatory spending. However, customer service and processing (like new applications or appeals) can slow dramatically.
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Food assistance: Programs like SNAP (food stamps) and WIC (nutrition for women and children) face funding gaps if a shutdown drags on.
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Passports & visas: Processing slows or stops, creating travel delays.
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Tax refunds: The IRS continues some operations, but many services pause, potentially delaying refunds and audits.
3. Economy and markets
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GDP hit: Each week of shutdown reduces economic output, since government workers stop spending paychecks and contractors lose business.
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Stock market volatility: Markets may react negatively to the uncertainty, especially if the shutdown signals broader fiscal dysfunction.
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Consumer confidence: Public perception of government instability can dampen spending and hiring.
4. Public health and safety
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FDA & CDC delays: Food inspections, disease surveillance, and some drug approvals can be postponed.
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National parks: Parks may close or operate with reduced staff, leading to sanitation, safety, and visitor issues.
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Research disruptions: NIH grants and other federally funded science projects stall, slowing medical and academic research.
5. Long-term consequences
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Worker morale: Repeated shutdowns demoralize federal employees, making recruitment and retention harder.
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Credibility: Internationally, shutdowns raise questions about U.S. political stability and fiscal management.
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Catch-up costs: Restarting agencies after closures is inefficient and costly.
What to do during a government shutdown
Key points at a glance
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Essential programs keep running (Social Security, Medicare, Medicaid), but services may slow.
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Federal workers and contractors may miss paychecks, though most employees get back pay when funding resumes.
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Everyday services like passports, food aid, and national parks may be delayed or disrupted.
Who is most affected
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Federal employees & contractors: Paychecks are paused, though employees usually receive back pay. Contractors often do not.
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Families on food assistance: SNAP and WIC programs can face funding shortfalls if the shutdown lasts.
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Travelers: Passport and visa applications may stall, affecting trip plans.
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Students & researchers: Federal grants and projects may freeze, delaying studies and research.
How to prepare and cope
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Check benefit status: Confirm how your benefits (SNAP, Social Security, VA) will be processed. Agencies often post updates on their websites.
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Plan ahead for travel: Apply for passports and visas early, before processing delays mount.
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Stock up if on assistance: Families using WIC or SNAP should consider buying essentials early in case of disruptions.
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Talk to lenders: If youre a federal worker, ask mortgage or credit card companies about hardship options many offer temporary relief during shutdowns.
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Track agency announcements: Follow updates from the IRS, Social Security Administration, and other key offices for service changes.
Quick checklist
Verify your benefits or pay status
Adjust travel plans if passport/visa needs are pending
Stock up if relying on food aid
Contact lenders if paychecks may be delayed
Watch for agency updates online
Posted: 2025-10-01 02:03:32
