--- title: 5 Ways a Government Shutdown May Affect Your Money description: The U.S. government has shut down over a budget dispute — and your wallet will feel the effects. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 498 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Katherine Peach role: Associate Editor url: https://money.com/author/katherine-peach/ bio: Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. education: University of Maryland, Baltimore County at_money_since: 2025 articles: 14 covers: - Economy and Politics - Banking - Career Advice - Credit - Credit Cards - Debt - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes published: '2026-01-26T19:46:08.000Z' modified: '2026-02-03T13:40:46.000Z' section: Economy and Politics tags: - News word_count: 1128 canonical: https://money.com/government-shutdown-affect-money/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo-illustration of the Capitol Building with a maze of money in the background.](https://img.money.com/2023/09/News-Government-Shutdown.jpg) Fewer than three months after the longest federal government shutdown in U.S. history, lawmakers are gridlocked again ahead of a Friday funding deadline to keep the government fully operational. Six of the 12 annual spending packages that fund federal agencies for the fiscal year have already been passed by Congress and signed into law by President Donald Trump. However, the remaining six bills are being fiercely debated in the U.S. Senate and are at risk of missing the Jan. 30 deadline, which would send the U.S. government into another partial shutdown. The stalled bills include appropriations for the departments of the Treasury, Health & Human Services, Education, Labor, State, War (formerly known as Defense), Homeland Security, Transportation, Housing & Urban Development and other agencies. The debate hinges on funding for the Department of Homeland Security, which includes U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, known as ICE. Following the ICE killing of Alex Pretti, 37, in Minnesota on Saturday, the appropriations bill stalled, with many lawmakers refusing to vote for any ICE funding. "I hate shutdowns," Sen. Angus King, I-Maine, said during a CBS *Face the Nation* interview on Sunday. "But I can't vote for a bill that includes ICE funding under these circumstances." Because funding for the Department of Homeland Security is currently packaged together with several other departments, the debate over ICE funding could plunge the U.S. into another partial shutdown. “Any shutdown is a bad shutdown,” Andrew Lautz, a director of federal tax policy at the Bipartisan Policy Center, previously told Money. “Even if it’s a one-day shutdown.” While some agencies are already funded, many others — like the departments of the Treasury and Education — administer crucial programs that affect the finances of everyday Americans. Here are several ways a shutdown could affect your money. ## 1\. Federal workers are furloughed and paid late Perhaps the most directly impacted group of people during a government shutdown is federal workers and contractors who have nothing to do with the political negotiations over spending. (Lawmakers still get paid during government shutdowns.) According to the Department of Labor, the federal government employs [nearly 3 million](https://www.bls.gov/news.release/pdf/empsit.pdf) non-military workers. On top of that are “hundreds of thousands of federal contractors whose businesses in large part depend on the federal government,” Lautz says. Many of these workers are once again at risk of being either furloughed or asked to show up to work without on-time pay. A 2019 law guarantees back pay for these workers when the shutdown ends, but they are forced to make do in the meantime with no clear timeline for their next payday. “One missed paycheck can be a missed payment on your car, a missed payment on your mortgage,” Lautz says. “It can mean going into credit card debt.” Given the size of the federal workforce, Lautz also notes that the missed paychecks could also have a ripple effect on the local economies with a high concentration of federal workers, given that they will likely have to curtail spending throughout the shutdown. A [recent report](https://www.cbo.gov/system/files/2025-09/61773-Government-Shutdown.pdf) from the nonpartisan Congressional Budget Office estimated that a partial government shutdown could result in up to $400 million of lost compensation per day for federal workers. ## 2\. The IRS would suffer as tax season ramps up Tax season officially launched Monday, and the Trump administration [has been touting](https://www.govexec.com/management/2025/11/airports-seeing-spike-shutdown-impacts-tsa-screenres-air-traffic-controllers-call-out/409275/) potentially "gigantic" refunds this year. According to the Tax Foundation, refunds could be between $300 and $1,000 larger than normal due to a slew of [tax code changes](https://links.mail.money.com/u/click?_t=660b7040ddee404f8f2e51b1c741d051&_m=c6737424b86f46b7bb1d9b3f93f6c3de&_e=HqGUB1EEPeqz8aVDuZI9Kx9-mAsZWbp_mwZGBBnOEopRVEk1Cl29E-XdJZ5A5FNoy_Annw2wfr84Mj6NHz3ZFA4EssV0RdYVUKQhoZnKHYXqisWKsVLjAko7Fgw9-r0hmP4hyfpdnWTBFUnmNn-i7BaM5y1dQztJvl5G5K3sIMHQyeME718Kd_fELG07VG0WX2F-lWsDn8JjKm4vG5YlSIzse4-JjBq11SSPROQ9B9E68swhQwBxwmLOHxi0j5a32DZnYMdT7cNFOctSa5mr6AudhI9ddD5C608VPxlMk0XuXx0SApggfR8mBcXAsOams4EUPXbYWNCgcRXFow8KRZYgm5Uo5VXTaRBQz_1JokAOrhXioeV03Kk8bYPEEpAM1y1tlQK7gzlSKrlqmNI7eFN4b1HHIJnVMNYERC4eaKvVECxU768mBYjvObJf-JEe47ungNqI__d33yqw2Z4tYYmNosHxYso0FT9XVtaSLkg3jhcpKOR0kcvDToDKKZNMNtVG6N3VyAU2Oc1-9xFYvrJK_autB3L98HHRCjQYwygR1MewXL0ySvK2a9dB4VvlnqDr_Dy6eh6Mnc24CWzIzXzoZ7umqdodTNoCrX1IN3YlUN9pULbaK91XPQZEzbePZOJGcCfUVZhK2SWt48Eay-nmioGC_54vgasAb5nnXm3pV6oAo5I2g_98ez1_eClkFOU2a6utgBK19iw6KbVUSbQ93Xtb73DMe9ISJjEZ1MY%3D) from President Donald Trump’s One Big Beautiful Bill Act. Because the Treasury Department is awaiting appropriations, the IRS is at risk of partially closing at a crucial time. A shutdown right at the beginning of tax season could decimate the agency's ability to process tax returns and issue refunds in a timely manner. The IRS hasn't released new details on how many workers it would furlough during a shutdown, but the agency had to send home about half of its workforce during the last one. ## 3\. Travelers could see flight delays For travelers, the good news is that air traffic control and airport security continue during the shutdown, so wide-scale cancellations and delays should largely be avoided. “But that’s not to say there aren’t potential interruptions,” Lautz says. The departments of Transportation and Homeland Security, which oversees the Transportation Security Administration, or TSA, are among those requiring appropriations. TSA agents and other airport workers are generally deemed essential and asked to show up — but without pay. Many may decide not to. During the recent shutdown, [several airports reported major back-ups](https://www.govexec.com/management/2025/11/airports-seeing-spike-shutdown-impacts-tsa-screenres-air-traffic-controllers-call-out/409275/) as federal workers called off. National parks and museums would not be affected by a potential shutdown this time because the Department of the Interior has been funded. ## If you need to be protected while away on a trip, Travel Insurance has you covered ### Travel is full of unexpected events. Stay safe with a Travel Insurance policy. Click below to find out more today. [View Rates](https://money.com/pr/ua16db941bd8?ap_referrer=%2Fgovernment-shutdown-affect-money%2F) ## 4\. Government benefits might be disrupted (but not Social Security payments) Many federal benefits programs are affected during a government shutdown, but Lautz wants to make one thing clear: “Social Security benefits will continue to flow.” However, the actual administration of the program, including customer service and verification of eligibility, could be disrupted. The Social Security Administration's latest shutdown plan [says](https://www.ssa.gov/agency/shutdown/materials/contingency-plan-09-24-25.pdf) about 45,000 employees will stay on while 6,200 are furloughed. Social Security benefits are one example of “mandatory” government spending, meaning the government is obligated to [pay out these benefits](https://money.com/social-security-cola-prediction-2026/) even during a shutdown. Medicare and Medicaid benefits are also mandatory. However, the agency's shutdown plan says benefits verification and Medicare card replacement services may be put on hold. Temporary Assistance to Needy Families (aka welfare) and Section 8 housing assistance could also be affected since the administering departments require funding. SNAP benefits, which are mandatory spending via the Agriculture Department, are funded and are not likely to experience major delays. ## 5\. The release of economic data may be held up Among the long list of agencies that are hobbled by a government shutdown are those that monitor and report on the economy, namely the Department of Labor’s Bureau of Labor Statistics. This agency regularly releases data related to jobs, unemployment, [inflation](https://money.com/gas-prices-car-insurance-inflation-higher/) and more. Economists, businesspeople and policymakers — especially the Federal Reserve — rely heavily on this data to make decisions. The previous shutdown wrought havoc on the agency's data collection efforts — distorting some data releases while canceling others entirely. This spurred volatility in the U.S. stock market, as investors were forced to make decisions without key information. Lautz says he can't predict how markets will react, of course, but one thing's for certain: "Markets do not like uncertainty." ## Reduce payments and make debt manageable with a Debt Relief program ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/25289/medium_2e7b27ce-b30d-40a3-beef-0139ecba6b47.png) Our Partner [VISIT SITE](https://money.com/go/9ca90fe936a8?bidid=4029798225&pmeta=p129-c628-u31158&ptid=662298634&ptoken=fb9a46791d0cbd773218430f9e8943d4) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/23879/medium_3847e650-29eb-411b-9b8c-05deb0d02cbc.png) Our Partner [VISIT SITE](https://money.com/go/91a9e55b254f?bidid=4029798226&pmeta=p129-c628-u31158&ptid=662298634&ptoken=7eca56c7c8daa49e4156fe58c0c7cef3) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/15565/medium_832cc4b7-74f8-4735-8fe1-6917816cbe8d.png) Our Partner [VISIT SITE](https://money.com/go/4ae57b84a4c1?bidid=4029798224&pmeta=p129-c628-u31158&ptid=662298634&ptoken=7bc6a16245ca47e1246f8879a8b53814) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/22445/medium_ba73f26a-1e1e-4e49-9739-df1298783de6.png) Our Partner [VISIT SITE](https://money.com/go/776c83406c14?bidid=4029798231&pmeta=p129-c628-u31158&ptid=662298634&ptoken=d51876aed62337f0e20de09357c75118) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/9246/medium_94931930-28cf-46b5-b09d-683979caec81.png) Our Partner [VISIT SITE](https://money.com/go/592e67e43ddb?bidid=4029798228&pmeta=p129-c628-u31158&ptid=662298634&ptoken=b73c464b846a36cb6efaaa9ca62acbe9) ![](https://s3.consumersadvocate.org/prd/image/image/25289/medium_2e7b27ce-b30d-40a3-beef-0139ecba6b47.png) If you owe over $20,000 or more, Freedom Debt Relief can help you get back on your feet! [Get Started](https://money.com/pr/u5c2defb44d4?ap_referrer=%2Fgovernment-shutdown-affect-money%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/government-shutdown-affect-money/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "5 Ways a Government Shutdown May Affect Your Money" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/government-shutdown-affect-money/#webpage", "url": "https://money.com/government-shutdown-affect-money/", "name": "5 Ways a Government Shutdown May Affect Your Money", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-01-26T19:46:08.000Z", "mainEntity": { "@id": "https://money.com/government-shutdown-affect-money/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/government-shutdown-affect-money/#breadcrumb" }, "dateModified": "2026-02-03T13:40:46.000Z" }, { "@type": "NewsArticle", "headline": "5 Ways a Government Shutdown May Affect Your Money", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/09/News-Government-Shutdown.jpg", "width": 2880, "height": 1920, "caption": "News-Government-Shutdown" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. 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