There were dangerous signs of a government shutdown in late 2023 and early 2024, but continued resolutions and emergency measures averted it. On March 22, 2024, Congress passed a spending bill that fully funds the government through the remainder of the fiscal year, averting a partial government shutdown.
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Although there is no longer any concern that there will be a government shutdown for the remainder of the 2023-24 fiscal year, it is important to know how a future government shutdown could affect your finances. Here's what you need to know:
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What is a government shutdown?
A government shutdown occurs when a federal department or agency does not receive the funding it expected from the annual appropriations bill. Funding lapses occur when Congress fails to pass a bill authorizing funding or when the president refuses to sign a bill approved by Congress.
There have been 10 government shutdowns since Congress first established federal budget deadlines in 1974. Some lasted only a few hours, while his most recent symptoms, which occurred in the winter of 2018, lasted more than a month.
Will I get paid during the government shutdown?
it depends. If you work for the federal government and are not an excepted or exempt employee, you may be furloughed. Although each government agency has its own policies regarding excepted and exempt employees, here is a list of those most likely to be without pay.
military personnel
During the government shutdown, active-duty military members will continue to work but may not receive a paycheck. More than 2 million active-duty military personnel will serve, according to the Department of Defense's latest contingency plan.
Reservists will serve only on Active Guard Reserve (AGR) duty or for exceptional purposes, such as national security incidents. Military personnel will receive back pay during the government shutdown once funding is restored.
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federal government employee
The vast majority of federal employees will be furloughed until the government shutdown ends. Furloughed employees cannot perform any of their regular duties, even on a voluntary basis. However, once the government shutdown ends, they will be paid back for the time they were furloughed.
Each agency can designate its employees as exempt or exempt. Excluded employees must continue to work but will not be paid until the closure ends. Exceptional employee duties include ensuring the safety of others and protecting property.
Exempt employees are those whose salaries are paid outside of the annual appropriations bill. Exempt employees will continue to work as usual and receive regular paychecks during the closure.
Agencies that employ federal employees include:
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Faculty of Agriculture
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Ministry of Commerce
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Department of Energy
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State Department
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Ministry of Transport
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Ministry of Finance
Exceptional and furloughed federal employees, as well as military personnel, will receive back pay once the shutdown ends. The government stipulates that retroactive salaries must be paid as soon as possible, regardless of the pre-specified regular pay date.
Will I continue to receive Social Security benefits?
yes. Social Security benefits are not affected by the government shutdown, so beneficiaries can continue to receive regular checks. This is good news for retirees and those who rely on monthly Social Security income.
Medicare and Medicaid beneficiaries will continue to receive health care benefits because both programs are not part of the annual appropriations funds. However, some Social Security activities will be suspended during the government shutdown, such as verifying benefits and correcting and updating income records. If you lose your Medicare card, you will need to wait until the closure ends to have it replaced.
Will veterans, disabled veterans, and survivors continue to receive benefits?
yes. All veterans receive regular retirement checks. Families of deceased veterans who received pension checks through the survivor benefit system will also continue to receive regular payments.
Disabled veterans continue to receive disability benefits from the Department of Veterans Affairs. However, if the closure lasts more than a few weeks, payments may be delayed.
How will the government shutdown affect SNAP benefits?
The Supplemental Nutrition Assistance Program provides monthly stipends to eligible recipients to help pay for groceries. The U.S. Department of Agriculture works with state agencies and private organizations to oversee the program.
In the event of a government shutdown, recipients must continue receiving benefits for at least one month. USDA may rely on emergency reserves to cover future monthly benefits if needed. However, if the Department of Agriculture does not properly direct states to spend the funds, benefits could be interrupted.
Will I still receive WIC benefits?
The Special Supplemental Nutrition Program for Women, Infants, and Children is another USDA-administered program that provides supplemental foods, such as formula, to low-income parents. In the event of a government shutdown, WIC recipients will stop receiving benefits until funding is resumed.
How will the government shutdown affect national parks, museums, and travel?
When government shuts down, national parks close and most services cease. Some parks may remain open to the public if their physical characteristics make closure impractical. However, regular maintenance and on-site services are not available.
Federally run museums, such as the Smithsonian Institution, may use funding from previous years to stay open for a limited time. However, in the event of an extended closure, we will remain closed until funding is approved.
Airports will remain open during the government shutdown. However, many essential employees, including air traffic controllers and Transportation Security Administration personnel, will be working without pay. When employees take unscheduled time off, travel can be disrupted or delayed.
final take
Even if you're not a military member or federal employee, a government shutdown can have a subtle impact on your wallet and daily life. Certain food-related benefits, such as SNAP and WIC, may be suspended until funding is resumed.
Social Security, military pensions, and disability benefits will continue, but there may be some disruption to some services. Understanding how a closure will affect your finances will help you prepare properly.
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This article originally appeared on GOBankingRates.com: Will your money be affected by the government shutdown?
