Government Shutdown 2025: 5 Financial Moves To Make Right Now If You’ve Been Furloughed
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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The U.S. government shutdown that went into effect at midnight on Wednesday will have a major impact on federal employees — including hundreds of thousands of employees who will be furloughed. The New York Times estimates that work could be suspended for more than 580,000 federal employees while the government is shut down. In addition, many others are required to report to their jobs — without pay — until funding is restored.
Government shutdowns are not necessarily uncommon. This latest one is the 21st shutdown over the past 49 years, NBC News reported. Most have lasted only a few days. However, the longest shutdown (34 days) occurred in December of 2018 — during President Donald Trump’s first term in office.
No matter how lawmakers proceed, affected workers need to strategize over how to navigate their way through the shutdown. Here are five financial moves to make right now if you have been furloughed.
Also see the impact of the government shutdown on Social Security benefits.
Check Your Pay Status
Federal employees can still be paid in the event of a partial shutdown regardless of whether or not they are furloughed, according to FedSmith.com. The reason has to do with the Government Employee Fair Treatment Act of 2019, which requires that federal employees be paid even if they are “furloughed or required to work during a lapse in appropriations resulting from a government shutdown.”
While this is good news, you still won’t receive your pay until after the shutdown ends.
Review Your Budget
Living without a paycheck means taking a look at your monthly budget and figuring out where you can cut expenses to make it through the shutdown. This is easier if you have built up an emergency fund to cover six or more months’ worth of expenses.
But even if you have an emergency fund, you should still find areas to save money, such as not dining out or eliminating impulse purchases of nonessential items.
Consider Alternative Income Options
Just because you’ve been furloughed from your government job doesn’t mean you have to go without an income. Make it a priority to figure out how to generate immediate income.
Options include side hustles, part-time jobs, temp jobs, selling items through online platforms or garage sales, or even cashing in stocks that have provided profitable returns.
Contact Your Bank or Other Lenders
As CNBC reported, some financial institutions might offer assistance, including payment deferrals, loan modifications and other types of hardship assistance.
As an example, CNBC pointed to credit unions that are “preparing to offer zero-interest loans” to federal workers who see their pay impacted by the government shutdown.
Research Assistance Programs
Numerous programs are available to provide financial help if you need it during the shutdown.
For example, you can visit USAGov to find programs that provide assistance with energy bills, while food assistance is available through the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.
NBC News reported that SNAP funds are available for October. As for after that, if the shutdown were to continue, “SNAP has multiyear contingency funds available to it but did not specify how long those funds would last.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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