The government officially shut down on Oct. 1, 2025, after Congress failed to pass a funding bill. Many Americans are shocked. But amid all the noise, it’s important to keep certain points in mind. So let’s explore how the shutdown could impact your money and daily life.
Social Security
Under current law, Social Security payments are considered mandatory. So checks will go out in regular fashion. However, the Social Security Administration (SSA) may face a smaller workforce as some employees get furloughed. This means it could take longer than usual to have Social Security applications processed.
SNAP and WIC
The Supplemental Nutrition Assistance Program (SNAP) or food stamp benefits will continue to be paid as long as funding is available. The same goes for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The Department of Agriculture has confirmed that SNAP has multiyear contingency funds, but did not disclose an amount.
Medicare and Medicaid
Medicare and Medicaid benefits will not be suspended during a government shutdown. But the departments that run these programs could face staff shortages. As a result, some administrative services may be delayed. And you may experience longer wait times for customer service.
Mortgages
The processing of government-backed mortgages, such as Federal Housing Administration (FHA) loans and U.S. Department of Veterans Affairs (VA) loans, may take longer. This can impact the timeliness of closing transactions.
Small-Business Loans
The Small Business Administration (SBA) will stop issuing certain loans, which could hinder small businesses from acquiring capital.
Student Aid and Loans
During a government shutdown, federal student aid will continue to be provided to students. And servicing companies to which you pay your student loans won’t be affected. However, new applications for federal aid and or FAFSFA may be delayed.
Tax Refunds
The issuing of tax refunds may be delayed. However, you are still responsible for paying your taxes. The IRS will continue to process returns.
Air Travel
Air traffic controllers and Transportation Security Administration (TSA) agents are considered essential and required to work without pay during a government shutdown. So planes will take off. But because of reduced staff and the fact that many will be working without pay, you should expect delays.
Rail Transportation
Amtrak is mostly self-funded and expected to continue operations. Moreover, the Federal Highway Administration and Federal Transit Administration would not be impacted.
Federal Workers
Essential federal workers may be forced to continue working without pay during a government shutdown. However, they are promised back pay once the government reopens.
Furloughed employees can apply for unemployment insurance in their states. However, they may be required to pay it back after receiving back pay.
Banks
Financial services institutions, including banks and investment firms, will continue to operate. And Federal Deposit Insurance Corp.-insured banks will continue to offer coverage.
However, the stock market historically has experienced short-term volatility during government shutdowns. Plus, organizations that provide crucial economic reports such as the jobs report and inflation data may be closed. This could create some headwinds for the Federal Reserve, which uses this data to determine economic policy, including interest rates.
CDC
The Centers for Disease Control and Prevention will continue monitoring and responding to illnesses such as mass infections. But it may be hampered in providing information and certain services.
The Bottom Line
Experiencing a government shutdown can be an alarming time. But keep in mind that it has happened before, and the country recovered. Essential benefits such as Social Security payments, Medicare, and Medicaid will remain in effect. As would federal student aid. But you’re still required to make payments like student loans and taxes. You can expect delays at airports and customer service from government agencies. Government workers, including those deemed essential, may work without pay before receiving back pay when the government reopens.
The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
