The government shutdown will affect several key areas:
- Federal Employees and Payroll: Around 40% of federal workers, about 750,000 people, will be placed on unpaid furlough, with essential personnel like air traffic controllers and military continuing to work without pay. Paychecks for federal workers and active-duty military personnel will be delayed until funding resumes.
- Air Travel: Airport security and air traffic controllers will keep working without pay, leading to potential delays and longer security lines. Passport processing and international travel services may also face delays.
- National Parks and Museums: Many national parks and federal monuments, including Smithsonian museums, will close during the shutdown, affecting tourism and recreation.
- Economic Data and Reports: Key economic data releases from agencies like the Bureau of Labor Statistics will be delayed, impacting economic forecasts and Federal Reserve decisions on interest rates.
- Government Services: Some services continue uninterrupted, including Social Security, Medicare, Medicaid, and the Postal Service, although there may be slower processing times.
- Public Safety and Military: Law enforcement and active-duty military continue working without pay, and some National Guard duties might be curtailed unless critical. Veterans’ services mostly continue but with some limited disruptions.
- Long-term Economic Impact: While the shutdown may reduce GDP growth by roughly 0.15-0.2% per week of shutdown, historically, effects are generally short-lived, with economic activity rebounding once funding is restored. Still, prolonged shutdowns raise risks like permanent federal job cuts that could cause longer-term harm.
Overall, the shutdown causes immediate operational halts in non-essential government functions, creates financial stress for many federal workers, delays important economic information, disrupts travel and government services, and potentially dents short-term economic growth until resolved. The extent of impact depends heavily on the shutdown duration and any resulting policy decisions.
