As lawmakers at the negotiating table continue to stand at an impasse, many of the critical services older adults rely on are at risk. “With the federal government partially closed, SNAP benefits and other important programs that support the health and economic security of seniors could be interrupted,” says Bill Sweeney, AARP’s senior vice president of government affairs. “Older adults whose paychecks were withheld may face difficulty in paying their mortgage, rent, utilities or other household expenses.”
If the shutdown continues for weeks or even months, it will affect millions of people and cost tens of billions of dollars. In the short term, shutdown-related losses include delays in passport processing and small business loans; closures of national parks, museums and other sites; and a backlog of food-safety inspections.
Each agency develops its own contingency plan, following guidance issued during previous shutdowns. Generally, those deemed essential can stay at work. They can include border protection, law enforcement, disaster relief, air traffic control and TSA workers. Social Security checks can still be sent, but benefit verification and card issuance are affected. Food safety inspections halted during the last shutdown, but the FDA restored some in a few weeks, this time for high-risk products.
In the past, most shutdowns have had limited impact on financial markets. Investors tend to prioritize longer-term macroeconomic trends and are usually aware that shutdowns are short-lived. However, this time could be different if the impacts are prolonged and lead to a loss of confidence in the economy.