Now that the federal government has shuttered many doors, millions of Americans are wondering how this disruption will affect their finances. The answer lies in your personal situation. Here’s what to know – and what steps to consider.
People relying on safety net programs: There’s good news if you depend on Social Security, Medicare or Medicaid: payments from these programs will continue. The post office remains open during the shutdown, but note that (unrelated to the shutdown) as of Sept. 30, Social Security payments are no longer mailed. If you haven’t already, set up direct deposit or a prepaid debit card to avoid or minimize payment delays. Contact the Social Security Administration for help – though expect longer wait times due to the shutdown. And if you’re waiting on an IRS refund to help pay for day-to-day expenses, it could be delayed.
Federal employees: For furloughed workers and those working without pay, you are guaranteed backpay once the government reopens, but the delay can strain household budgets. You may be eligible for support through the Federal Employee Education and Assistance Fund (FEEA). And unlike in prior shutdowns, there is the threat of additional workforce reductions.
Government contractors: Unlike federal employees, contractors typically don’t receive retroactive pay. Missed workdays may result in permanent income loss, and delays in contracts and permits are likely.
Small business owners: Businesses that rely on federal contracts or serve government facilities – such as cafés, maintenance crews and transportation providers – may see a sudden drop in revenue.
