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What is a Government Shutdown

Navigating your financial wellness when the government shuts down.

A shutdown can have broad implications across the country, and not just with families of government employees or military members. In particular, navigating the financial impacts can be stressful enough in such an uncertain time.

In this blog article, we will answer the question “What is a government shutdown?” and discover how it could impact your finances and daily life.

What is a government shutdown?

A government shutdown occurs when the federal government's funding expires, leading to the cessation of non-essential services and furloughing of federal employees. Essential services (like those related to law enforcement and public safety) continue to function, as do mandatory spending programs.

How could it impact me?

Here are a few ways people could be impacted:

  • Income disruption: Federal employees may face delayed paychecks or furloughs, affecting their ability to meet financial obligations. Numerous federal contractors would be out of work and not receive backpay.
  • Social Security and Medicare: Checks are sent out, but benefit verification and card issuance would cease.
  • Air travel: Air traffic controllers and TSA agents would be considered essential and would work without pay during a shutdown, which could result in delays, cancellations, or longer wait times for travelers.
  • Delayed services: Tax refunds, small business assistance, passport processing, etc. could be delayed during a shutdown.
  • Economic uncertainty: The stress and uncertainty related to a government shutdown could lead to financial anxiety for many individuals and businesses.
  • WIC funding: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) would stop immediately.
  • Food stamp benefits: Any benefits through the Supplemental Nutrition Assistance Program (SNAP) would remain intact at first but could be impacted if the shutdown lasts for a longer amount of time.
  • Head Start programs: Children from low-income families would lose access to Head Start preschool programs.
  • Student loans: College students could see delays in their student loans.

What are some ways to manage my finances during a government shutdown?

  • Get a full picture of your finances with our free budgeting tool, Money Management. View all your accounts, transactions, spending, debt, and much more all in one convenient place.
  • We’re partners with trusted national non-profit GreenPath Financial Wellness to offer our members personalized counseling, guidance, and educational services whenever it’s needed.
  • If you’re ever facing financial impact due to a government shutdown, please don’t hesitate to reach out to us. From Clearview Live® to visiting one of our financial centers, our team is here to help!
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