What Happens in a Government Shutdown? Who’s Affected (and What to Do)

Here’s what happens if there’s a government shutdown: Some government agencies and programs remain open while others (those considered “nonessential”) close. Government shutdowns can cause delays in pay and economic disruption.

The most recent shutdown began on October 1, 2025, after Congress failed to pass funding bills for key agencies. Essential operations like Social Security continued, but millions of Americans felt the effects, from missed paychecks to delayed food assistance.

In this guide, we’ll share everything you need to know about government shutdowns, including what they are, how they happen, and how many the U.S. has had. We’ll also explain which agencies remain open, which close, and what essential services continue. In case you’re affected, we share a list of resources.

Table of Contents

1. What is a government shutdown?
2. Why do they happen? 
3. What happens?
   1. Who’s affected?
   2. Social Security checks
   3. VA benefits
   4. What stays open?
4. How many times has the government shut down?
   1. How long do they usually last?
5. What to do if you’re affected
   1. Assistance options
6. FAQ

What is a government shutdown?

A government shutdown is when several (but not all) government agencies must close temporarily because Congress didn’t pass a proposed budget, called an appropriations bill. 

There are 12 appropriations bills each year, and a committee in the House is assigned to oversee each one. Every year, Congress must agree on a federal funds budget, and when they agree, the president signs it. When none of the bills pass, a government shutdown occurs. When some bills pass and others don’t, a partial government shutdown occurs.

Why do they happen? 

When Congress can’t agree on a budget, federal agencies can’t operate. The Antideficiency Act says the federal government can’t spend money without congressional approval. Past disagreements over the budget have included disputes over the Affordable Care Act in 2013 and disagreements over border wall funding in 2018 and 2019.

What happens in a government shutdown?

In a government shutdown, several federal agencies are forced to stop operating. Some employees, deemed essential, continue working but do not receive pay during the shutdown. Nonessential employees can’t work until the shutdown ends. However, many essential services have traditionally continued to run.

The most recent shutdown reminded us how wide-reaching these effects can be. More than a million federal employees worked without pay or were furloughed, while some federal programs, including food assistance, ran on partial or depleted funds.

Even if agencies eventually reopen, delays in pay and services can last weeks or months.

Given how common this issue has become, I take an empathetic and realistic approach when advising clients. My primary recommendation is to build up cash reserves whenever possible.
If additional cash flow isn’t available, I often suggest temporarily pausing contributions to savings or retirement accounts and holding off on making extra debt payments beyond the minimum. We also review their budget to identify areas where spending can be reduced or paused in the short term, and I advise deferring large financial decisions or purchases until the situation stabilizes.

Here is a list of typical agency closures. Keep in mind that some shutdowns are partial shutdowns, which means agency closures may vary depending on the individual nature of the shutdown.

Who’s affected?

Federal agencies and services closures

• Transportation Security Administration (TSA) workers: These are essential employees and are expected to go to work. However, because the federal budget hasn’t been approved, they must work without immediate pay. They will earn back pay when the government reopens. Many employees may not show up to work, which can result in longer lines at the airport.
• Student loan processing: Processing the FAFSA and student loan distribution could be delayed during a shutdown.
• Small Business Administration (SBA): The SBA closes during shutdowns, which can delay loan applications and approvals. 
• Smithsonian Museums: The Smithsonian museums close during shutdowns.
• IRS: The IRS contingency plan states that although the IRS would remain open, it would be at reduced capacity with limited services, and 60,000 employees could be furloughed.
• Food and Drug Administration (FDA): The FDA could stop food safety inspections, and 42% of workers could be furloughed.
• National Institutes of Health (NIH): The NIH contingency plan explains that it would furlough 75% of staff during a shutdown. There will likely be delays in grant applications, grant processing, and clinical trials.
• Energy and utilities: The 2025 shutdown halted funding for the $4.1 billion Low-Income Home Energy Assistance Program (LIHEAP), which helps nearly 6 million households pay heating and utility bills.

Employee pay during shutdowns and furloughs

The two main types of federal workers are essential and nonessential employees. During a government shutdown, essential employees must continue to work but won’t get paid until the government reopens. The Government Employee Fair Treatment Act of 2019 guarantees that all federal employees receive retroactive pay once a shutdown ends.

In November 2025, more than 1.4 million federal employees worked without pay or were furloughed during the 43-day shutdown, the longest in U.S. history. Many workers spoke out about missed rent, delayed bill payments, and mounting debt.

Economists note that even temporary shutdowns have ripple effects. The Brookings Institution reports that extended shutdowns reduce public confidence in government, disrupt economic activity, and slow GDP growth by billions of dollars each week. The longer a shutdown continues, the harder it becomes for agencies (and families) to recover from the financial strain.

Will Social Security checks be delayed?

No, Social Security checks will go out during a shutdown. However, other services related to Social Security, like issuing cards or processing applications, could be delayed.

Do VA benefits stop?

No, VA benefits do not stop during a government shutdown. Veterans can still go to VA medical centers, burials will still occur at national cemeteries, and suicide prevention programs and other aid programs continue. Although VA benefits continue, some call centers, hotlines, and regional offices may be closed during a shutdown.

What stays open?

Nearly 42 million Americans, about 12% of the population, rely on the Supplemental Nutrition Assistance Program (SNAP), which is managed by the U.S. Department of Agriculture (USDA).

During the 2025 shutdown, the USDA initially said it would pause all SNAP payments beginning November 1, and the issue turned into a legal battle.

This marked the first time in SNAP’s 60-year history that benefits were partially frozen during a shutdown. Food banks across the country reported surging demand as families struggled to bridge the gap.

How many times has the government shut down?

There’s a difference between a funding gap and a full government shutdown. According to the Peter G. Peterson Foundation, a nonpartisan organization that researches and educates others about America’s financial challenges, the government has shut down 15 times since 1980.

Before that, the government had funding gaps, but it stayed open despite them. In 1980, Attorney General Benjamin Civiletti made a more formal recommendation on how the government should operate during funding gaps, which led to the government shutdowns we are familiar with today.

Altogether, the government has had 20 funding gaps or shutdowns in the past 50 years, according to the Bipartisan Policy Center. Not all of these gaps were noteworthy or long enough to make a negative impact. 

What happened during the last shutdown?

The last shutdown began on October 1, 2025 and lasted 36 days. It began after Congress failed to agree on key appropriations bills, halting funding for several major agencies.

The impasse delayed pay for more than a million federal employees and interrupted programs like SNAP and LIHEAP, which provide food and energy assistance to low-income households.

On November 10, the U.S. Senate announced it had passed legislation to end the shutdown and reopen the government. The House of Representatives voted in favor of the bill on November 12, 2025, and President Trump signed it that night, officially ending the shutdown.

How long do they usually last?

While most shutdowns last only a few days, the last one shows how quickly a funding lapse can escalate into a national crisis. The 2025 shutdown, which began on October 1, surpassed the old record to become the longest in U.S. history.

Here are the most notable government shutdowns in U.S. history:

1. 1996: November 14 to November 18 (5 days)
2. 1996: December 16, 1995, to January 5, 1996 (21 days)
3. 2013: October 1 to October 16 (16 days)
4. 2019: December 22, 2018, to January 24, 2019 (34 days)
5. 2025: October 1, 2025, to November 12, 2025 (35 days)

Historically, most funding gaps have been brief and resolved within a week. But prolonged shutdowns can happen when political gridlock prevents Congress and the president from reaching an agreement on the federal budget, leaving millions of Americans caught in the middle.

What to do if you’re affected

If your paycheck or benefits are delayed because of a shutdown, here are steps you can take to stay afloat financially until the government reopens.

1. Contact your bank or credit union. Many institutions are offering emergency relief (such as USAA’s no-interest government shutdown loans) for affected federal workers. Check whether your financial institution has a similar program.
2. Adjust your short-term budget. Pause optional spending and focus on essentials like housing, food, and utilities. If you can, contact lenders and utility providers early to request payment extensions or hardship programs.
3. Explore community and nonprofit assistance. The Federal Employee Education and Assistance Fund (FEEA), Navy-Marine Corps Relief Society (NMCRS), and Air Force Aid Society (AFAS) can help cover emergency expenses. Local food banks are also increasing outreach for families affected by delayed SNAP benefits.
4. Document all communication. Keep written records of your contact with creditors, landlords, and service providers in case you need to show proof of hardship later.
5. Plan for recovery once pay resumes. When back pay arrives, prioritize catching up on essentials and rebuilding an emergency buffer before resuming long-term goals like retirement contributions.

Assistance options

• The Air Force Aid Society (AFAS) can help eligible Air Force members with emergency expenses. 
• USAA offers a no-interest government shutdown loan. 
• For non-military personnel, the Federal Employee Education and Assistance Fund (FFEA) is a nonprofit that provides emergency assistance, including child care assistance, to federal employees.
• The Navy-Marine Corps Relief Society (NMCRS) assists active-duty and retired sailors, Marines, and their family members who have financial needs.
• The Office of Personnel Management (OPM) website provides information about furloughs and a list of contacts, organized by topic.

Shutdowns are temporary, but the financial stress can feel anything but. Focus on what you can control right now: protecting essentials, staying in communication with lenders, and giving yourself time to recover once paychecks resume.
I advise contacting creditors immediately to explore available options and to keep thorough documentation of all communications.
Also, consider a short-term side gig or maintain a temporary job once the government stabilizes. You can use the additional income to rebuild your emergency fund, catch up on any missed or reduced payments, and resume contributions to retirement savings that may have been paused.

FAQ

Will I get paid during a government shutdown?

No, federal employees are not paid during a government shutdown, but they will receive retroactive pay after the shutdown.

Are student loans affected by a government shutdown?

A government shutdown could delay student loan processing.

Can I file taxes or get a refund during a shutdown?

The IRS remains open during a shutdown, though some services could be delayed due to its reduced workforce.