If the federal government shuts down, non-essential government operations and services stop due to a lapse in funding until Congress approves a new budget. Hundreds of thousands of federal employees—estimated at around 900,000—could be temporarily furloughed without pay, though they typically receive back pay once the shutdown ends. Essential services, such as active-duty military, air traffic controllers, certain law enforcement, and programs like Social Security and Medicare generally continue, but may face operational delays. A shutdown disrupts many public services: passport and visa processing could slow, national parks and museums may close, and food safety inspections and environmental protections may halt. The shutdown also delays economic and financial reports critical for markets and monetary policy decisions, potentially harming economic stability. The postal service stays operational since it does not rely on federal appropriations. There are broader economic impacts, including slowed consumer spending by furloughed workers, potential business difficulties, and increased uncertainty in financial markets. Prolonged shutdowns risk damaging the housing market, delaying federal loan processing, and harming food assistance programs like WIC and SNAP. Unlike prior shutdowns, there is currently a possibility that some federal workers could face permanent job losses instead of just furloughs. Overall, a government shutdown causes immediate disruptions to government functions, financial strain on federal workers, and negative ripple effects on the broader economy until government funding is restored.
