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.
