Due to a lapse in government funding, the federal government entered a shutdown at midnight on September 30, 2025. This means that, starting on October 1, the federal government's operations will be drastically reduced.
The agency estimates that real gross domestic product (GDP), which has been adjusted to remove the effects of inflation, will be lower in the fourth quarter of 2025 than it would have been in the absence of a shutdown.
A government shutdown risks furloughing non-essential federal workers, halting various government services like national park operations, food assistance, and student loan processing, delaying economic data releases, affecting federal contractors, and causing economic slowdown, while essential services like national security, air traffic control, and Social Security payments generally continue but may face disruptions.
Federal employees who work during a shutdown don't get paid until the shutdown ends - including the military. This is a large reason for the delays in services that you may experience during a shutdown.
The dollar amount increase to checks will vary depending on a person's benefit amount, but the average Social Security Retirement benefit, $2,008.31 in July 2025, will grow by about $56.
Yes, you can generally get a passport during a government shutdown because the U.S. Passport Agency is considered essential and funded by fees, so it stays open, but services might slow down or be affected if passport offices are in other federal buildings that close, potentially causing delays. Expect processing to continue, but be prepared for potential slowdowns and limited access to agency locations.
Does the IRS close during a shutdown? No, the IRS has not historically closed during a government shutdown, and even if it did, you'd still need to file your taxes. There has never been a government shutdown during the tax -filing season before.
During a U.S. government shutdown, essential services like Social Security, VA healthcare, and emergency response (FEMA, fire/police) generally continue, but many non-essential federal agencies, national parks, museums (Smithsonian), monuments, IRS offices, and visa/passport processing slow down or close, impacting permits, routine inspections (like FDA), and federal building tours. While parks often remain physically accessible, visitor centers, restrooms, and trash collection cease, creating potential sanitation and safety issues.
Due to an abrupt interruption, the operating system does not have time to complete writing data to the hard disk. As a result, it can be damaged or completely erased. If you have unsaved documents or projects, you may lose any changes that were not saved before the shutdown.
Each state has navigated the shutdown differently, so SNAP benefits in some states have already been issued in full. Other states may have begun implementing programs to fill the gap during the lapse in benefits in November. If you already have SNAP money on your EBT card from previous months, you can still use it.
During a U.S. government shutdown, essential services like Social Security, Medicare, Medicaid, VA healthcare, mail delivery (USPS), and military operations generally continue, as do passport processing and emergency responses, funded through prior appropriations or fees; however, discretionary programs, national parks (except open-air areas), and many non-essential agency functions face delays or closures, though staff work without pay.
A government shutdown affects federal employees (furloughed or working without pay), military personnel, essential workers like air traffic controllers, and the public through disrupted services in areas like food assistance (SNAP/WIC), housing aid, small business loans, and national parks, while impacting the broader economy through reduced spending and delayed federal licenses/permits, causing significant economic slowdown and uncertainty for individuals and businesses alike.
IRS resumes normal activities following the 2025 lapse in appropriations | Internal Revenue Service.
Yes, your money is safe in the bank as long as it's in an FDIC-insured institution, and we recommend keeping it there in 2026.
While the FDIC insures deposits up to $250,000, meaning your money is generally safe if a bank fails in a crisis, a legal mechanism called "bail-in" authority exists under U.S. law (Dodd-Frank Act) that could allow failing banks to convert large deposits into equity (essentially seizing funds to recapitalize the bank). Although not implemented in the U.S. yet, this "bail-in" concept has been used elsewhere, creating concern, though many experts believe regulators would prevent the system collapse it would cause. For typical accounts, deposits are protected, but large, uninsured amounts carry more risk in extreme scenarios, making diversification across banks a wise precaution.
Thanks to a law passed by Congress in 1996 (Section 1145, “Protection of Social Security and Medicare Trust Funds”), Social Security checks should keep flowing, even if the U.S. government begins defaulting on its other existing financial obligations.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.