Federal lawmakers are locked in another budget standoff, pushing the government toward a potential shutdown that could ripple through American households within days.
Social Security recipients can breathe easy – monthly checks will continue without interruption. Medicare and Medicaid benefits also remain protected, ensuring healthcare coverage stays intact during any shutdown.
But student loan borrowers might face hurdles. While loan payments will continue processing, the Education Department plans to operate with just 11% of its staff. This means longer wait times for support and possible delays in grant processing.
Travelers should prepare for headaches. While TSA agents and air traffic controllers must work through any shutdown, reduced staffing could mean longer security lines and potential flight delays. Passport processing may slow to a crawl.
Military families face immediate pressure. Service members would work without pay until the government reopens, straining household budgets. Most base commissaries would close, forcing families to shop at potentially more expensive off-base stores.
Markets often get jittery during shutdowns. During the 2013 closure, 40% of Americans cut their spending, according to Goldman Sachs. While retirement accounts might see short-term swings, historical data shows these dips typically reverse once the government reopens.
Federal workers face the heaviest burden. Non-essential employees would be furloughed without pay, while contractors could see temporary layoffs. Even essential workers required to stay on the job would see their paychecks delayed until Congress reaches a deal.
IRS operations would slim down significantly, though tax collections continue. The Postal Service remains unaffected, and federal courts will stay open.
SNAP benefits and WIC support for low-income families could continue short-term, but extended shutdowns put these crucial programs at risk.
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