How the government shutdown impacts your money: Student loans, Social Security, investments, and more

Federal Programs and Social Security - Social Security checks and electronic payments will continue to be delivered during a government shutdown, ensuring retirees receive their monthly benefits [2] - Medicare and Medicaid programs are protected from funding shortfalls, meaning healthcare benefits will not be disrupted [2] SNAP and WIC Benefits - SNAP and WIC benefits can continue if the funding shutdown is not prolonged, although WIC may be more vulnerable due to its tight budget [3] Student Loans - A government shutdown could significantly impact student loan borrowers, as many Department of Education employees may be temporarily laid off, following a previous workforce reduction of about 50% [3] - While mandatory funding programs like Pell Grants and Federal Direct Student Loans can still make payments, this may only last as long as available funds [4] - Fewer federal employees could delay loan processing and forgiveness, complicating issue resolution for borrowers [5] Travel Services - Essential federal workers, including airport security and air traffic control, will continue working, but travelers should expect potential delays [5] - Passport and visa services will remain operational as long as fees are available, but delays in issuance may occur [6] Economic Impact - The economic impact of a government shutdown will depend on its duration, with delayed government payments potentially having a minor effect if resolved quickly [10] - A longer shutdown could delay the release of critical economic data, increasing the risk of missteps by the Federal Reserve regarding interest rates [12] Investments - Investor sentiment may be negatively affected in the short term, particularly if the shutdown disrupts the Fed's rate-lowering agenda, leading to temporary market volatility [13] - Gold prices are expected to remain strong as a safe-haven asset during economic uncertainty [14] Government Paychecks - Nonessential federal employees will not be paid until the government reopens, and contractors may implement temporary employment cutbacks [15] Other Federal Services - The IRS will likely reduce staff during a shutdown, affecting phone support, but tax payments will still be collected [16] - Mail delivery services will remain unaffected, and federal courts will continue to operate [18]