Is the government shutdown happening?

Most recently, there was almost a government shutdown on Sept. 30 however, Congress worked on passing a stopgap funding bill to keep the government open through mid November. Here are some key takeaways: This temporary funding bill narrowly staved off a shutdown after days of a stalemate in large part fronted by House Republicans. Former House Speaker Kevin McCarthy reached across the aisle and secured much-needed Democratic support for the short-term bill despite opposition from his own party. Senate members of both parties also came together to move the bill to be approved by President Biden. The stopgap funding only keeps everything up and running until Nov. 17. They will have to once again pass another funding bill to avoid shutdown again at that point.

How does a government shutdown affect my money?

A government shutdown affects Americans financially in many ways whether you work for the government or not. If you receive checks from or participate in the following programs, you may experience delays if there is a government shutdown: Social security payments Student loans Tax refunds or credits Unemployment benefits Medicaid or Medicare benefits Federal worker paychecks Federal Reserve interest rates Supplemental Nutrition Assistance Program, or SNAP Women, Infants and Children, or WIC, aid

When has there been a US government shutdown?

Historically there have been a few government shutdowns such as the following: From 1995 through 1996, there was a 21-day shutdown during the Clinton administration due to major spending cuts. In 2013, there was a 16-day shutdown during the Obama administration due to a dispute over the Affordable Care Act. In 2018, through 2019 the longest shutdown of 35 days occurred during the Trump administration caused by whether or not to fund the expansion barriers between the United States and Mexico.

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Government Shutdown 2023 Overview: How Does It Impact Your Money?

November 5, 2023

6 min Read

Written by Caitlyn Moorhead

Edited by Melanie Grafil

The east side of the US Capitol in the early morning.

drnadig / Getty Images

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In 2023, the White House and Congress have had a real “will they won’t they” dynamic when it comes to keeping the government open and running. Throughout several points of the year, rumors of recession and shutdown have been whispered, sometimes just barely being avoided. As financial troubles tend to trickle down from the top, a government shutdown affects everyone’s money either directly or indirectly.

Read: What To Do if You Owe Back Taxes to the IRS

What Happens During a Government Shutdown?

During a government shutdown, many government agencies will close and federal workers will stop working, be furloughed or be asked to work without pay. Depending on the length of the shutdown, some agencies will have funding for a few days, but will also eventually have to shutter if it lasts for more than a week or so. In order to avoid these shutdowns Congress and the White House have to agree on spending bills and how to allocate funds.

These shutdowns typically occur when funding legislation for the federal government is not enacted before the next fiscal year begins. These shutdowns affect everyone from non-essential workers to top state and government officials and departments.

Potential 2023 Government Shutdown: Quick Take

The rollercoaster of how and when to fund the government has kept Americans, specifically federal employees on their toes at many points throughout the fiscal year. Here’s an outline of the most recent financial fiasco and last-ditch efforts to avoid a government shutdown:

In late September and early October, Congress worked on passing a stopgap funding bill to keep the government open through mid-November.
This temporary funding bill narrowly staved off a shutdown after days of a stalemate in large part fronted by House Republicans.
Former House Speaker Kevin McCarthy reached across the aisle and secured much-needed Democratic support for the short-term bill despite opposition from his own party.
Senate members of both parties also came together to move the bill to be approved by President Biden.
The stopgap funding only keeps everything up and running until Nov. 17. They will have to once again pass another funding bill to avoid shutdown again at that point.

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Government Agencies That Stop During a Shutdown

Though a shutdown causes various government agencies to stop working, not everything does. Below are some examples of agencies that do or could close, as well as employees that go without pay during the shutdown:

National parks
Millions of active duty members
Air traffic controllers
Transportation Security Administration, or TSA
Small Business Administration
NASA
Treasury
Agriculture
Interior
Commerce
Justice
Law enforcement
Museums such as the Smithsonian or National Mall
Nutrition and food assistance programs
Social services for food or education
Healthcare research and development
Federal law enforcement efforts won’t stop, but could slow

Has There Been a US Government Shutdown?

Though government shutdowns have been narrowly avoided many more times than they have occurred, this does not mean they have never happened. Below is a brief outline of shutdowns that have occurred in recent history:

1995 to 1996: There was a 21-day shutdown during the Clinton administration due to major spending cuts.
2013: There was a 16-day shutdown during the Obama administration due to a dispute over the Affordable Care Act.
2018 to 2019: The longest shutdown of 35 days occurred during the Trump administration. It was caused by the decision of whether or not to fund the expansion barriers between the United States and Mexico.

9 Ways a Government Shutdown Affects Your Money

Even if you are not a federal employee, many programs, payments or other funding could be delayed in getting to you when a shutdown occurs. If you receive checks from or participate in the following government programs, you may experience delays if there is a government shutdown:

Social security payments
Student loans
Tax refunds or credits
Unemployment benefits
Medicaid or Medicare benefits
Federal worker paychecks
Federal Reserve interest rates
Supplemental Nutrition Assistance Program, or SNAP
Women, Infants and Children, or WIC, aid

Final Take To GO

If a government shutdown does occur, hopefully, it will be over quickly, and funding for workers, programs and agencies will kick back in without a hitch. When and if the government does close temporarily, it is good to know how you could be impacted financially.

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FAQ

Although the basic idea behind a checking account can be simple to understand, there are still many common questions surrounding them, in part because there are so many different kinds. Here are the answers to some of the most frequently asked questions regarding checking accounts.

Is the government shutdown happening?
- Most recently, there was almost a government shutdown on Sept. 30 however, Congress worked on passing a stopgap funding bill to keep the government open through mid November. Here are some key takeaways:
  - This temporary funding bill narrowly staved off a shutdown after days of a stalemate in large part fronted by House Republicans.
  - Former House Speaker Kevin McCarthy reached across the aisle and secured much-needed Democratic support for the short-term bill despite opposition from his own party.
  - Senate members of both parties also came together to move the bill to be approved by President Biden.
  - The stopgap funding only keeps everything up and running until Nov. 17. They will have to once again pass another funding bill to avoid shutdown again at that point.
How does a government shutdown affect my money?
- A government shutdown affects Americans financially in many ways whether you work for the government or not. If you receive checks from or participate in the following programs, you may experience delays if there is a government shutdown:
  - Social security payments
  - Student loans
  - Tax refunds or credits
  - Unemployment benefits
  - Medicaid or Medicare benefits
  - Federal worker paychecks
  - Federal Reserve interest rates
  - Supplemental Nutrition Assistance Program, or SNAP
  - Women, Infants and Children, or WIC, aid
When has there been a US government shutdown?
- Historically there have been a few government shutdowns such as the following:
  - From 1995 through 1996, there was a 21-day shutdown during the Clinton administration due to major spending cuts.
  - In 2013, there was a 16-day shutdown during the Obama administration due to a dispute over the Affordable Care Act.
  - In 2018, through 2019 the longest shutdown of 35 days occurred during the Trump administration caused by whether or not to fund the expansion barriers between the United States and Mexico.

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