How the Government Shutdown May Impact You

The federal government is effectively closed for business after lawmakers failed to pass a funding bill prior to the September 30 deadline. What does this mean for the everyday American? Here is a closer look at what you can expect from this shutdown, including what services may be impacted.

What Critical Functions Will Remain Open During the Government Shutdown

The GOP needs at least seven Senate Democrats to cross party lines and approve the proposed spending package. Senate Minority Leader Chuck Schumer is requiring that the bill include an extension of the enhanced subsidies provided to Americans using health insurance through the Affordable Care Act (ACA). Meanwhile, Republicans are working to pass an extension of the government funding for seven weeks, asking for additional money to provide security services for the members of the executive, legislative, and judicial branches.

It is difficult to look to history to ascertain how long this shutdown may persist. No two shutdowns are the same, just as every administration approaches the problem in different ways.

However, during a typical shutdown, critical functions that are deemed essential remain open. The various agencies responsible for these functions are required to file contingency plans with the White House. These contingency plans detail how the agency will operate through a shutdown, as well as how many employees will continue to work. The plans also indicate how many of the employees will be required to work without pay.

One of the most common questions is how Social Security and Medicare benefits will be impacted by the shutdown. Officials have confirmed that social security payments will continue to be processed as usual. The Department of Health and Human Services (HHS) also confirmed that Medicare and Medicaid payments will still be distributed.

The Department of Labor noted that those receiving unemployment benefits will continue to receive these benefits. However, this service is contingent on the state agencies having the necessary funding to process the payments.

Additionally, the Department of Veterans Affairs detailed in its contingency plan that it will continue to provide medical care and critical services for veterans during the shutdown.

The Department of Homeland Security (DHS) detailed that most of its personnel will be retained through the shutdown. This includes staff working in Customs and Border Patrol (CBP), as well as the workers in the Immigration and Customs Enforcement (ICE) agency. It should be noted that previous shutdowns have led to the cancellation of immigration hearings.

Disruptions to Expect

Unlike past shutdowns, the U.S. Office of Management and Budget (OMB) is not consolidating all of the shutdown plans on its site. Instead, it is up to each agency to post its plans on its own site.

According to these posted plans, the U.S. Food and Drug Administration (FDA) will be limited in the volume of food inspections it will be able to conduct. Officials confirmed that the FDA will still have the capacity to respond to emergencies, according to an update from the HHS.

The Department of Education said that it will need to furlough the majority of its staff throughout the shutdown. However, the agency will still provide funding for Pell Grants and other types of federal student loans. Title I and IDEA grant funding will also still be available to students. Education at the state level will keep its access to the awards granted over the summer.

Historically speaking, the National Park Service (NPS) has often been significantly impacted by federal government shutdowns. According to the NPS, approximately $414 million in revenue and 8 million recreation visits were lost during the 2013 government shutdown, a closure that lasted 16 days. While several parks remained open during the recent 2019 shutdown, the NPS was not able to provide services to visitors. The inability to collect entrance fees translated to a loss of about $400,000 over the course of the shutdown.

Air travelers are also likely to experience disruptions due to the shutdown. Although air traffic controllers and Transportation Security Administration (TSA) officers are generally deemed essential workers, they do not receive pay for their work during a shutdown. This inevitably leads to staffing shortages that create disruptions in the skies as airports are not able to operate at full capacity.

Furloughed federal workers will receive their back pay after the crisis is solved. However, federal contractors who are put on furlough or temporarily laid off during a shutdown are not guaranteed to ever see the money.

We will continue to monitor this situation and update as the negotiations unfold on Capitol Hill.

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