How Massive Government Shutdown Impacts Everyday Life In New York

A government shutdown is now a reality and New Yorkers are bracing for the fallout. Here’s what it could mean for you.

A government shutdown is now a reality after the Senate adjourned on Tuesday without approving a funding proposal.

Tens Of Thousands Of Federal Workers Furloughed

Tens of thousands of federal workers are on furlough with a government shutdown now in effect. Congress failed to approve a new spending bill Tuesday night, leading to a shutdown just after midnight on Wednesday.

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This means that federal employees whose jobs do not protect life or property will be told not to come to work.

Air traffic controllers, TSA agents, ICE officers, prison staff and active-duty military members are expected to continue working without pay.

They should receive back pay when the shutdown is over.

How Shutdown Impacts New Yorkers

A government shutdown isn’t just politics in Washington; it has real consequences for New Yorkers.

While the impact depends on how long the shutdown drags on, most citizens will feel it in one way or another.

Economic Impact

Shutdowns ripple through the broader economy, often in ways that are harder to see at first.

Economic data: Key reports from agencies like the Bureau of Labor Statistics stop coming out, leaving businesses and investors in the dark.

Furloughed workers: Federal employees may be forced to stay home without pay or work without paychecks. That reduces household spending, which hurts local economies.

Contractors: Unlike federal workers, contractors usually don’t get back pay, leaving many in financial trouble.

Growth: The Congressional Budget Office has found that past shutdowns have cost the U.S. billions in lost economic activity.

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Impact on Government Services

Travel: U.S. airlines are warning that the government shutdown could cause flight delays for airports and travelers with air traffic controllers and TSA employees required to work without pay.

Critical functions tied to national security and public safety continue, but many other services are slowed or suspended.

National parks and museums: Expect closures or extremely limited services. Smithsonian museums and other federally run facilities usually shut their doors.

Health and safety: Non-urgent work at agencies like the FDA and EPA slows down. Food safety inspections may get delayed, and new clinical trials at the NIH could stall.

Immigration and passports: While U.S. Citizenship and Immigration Services remains open because it’s fee-funded, other services like immigration hearings may be postponed. Passport processing also slows if the shutdown lasts.

Small businesses: The SBA stops approving new loans, freezing billions in federal support.

Financial services: FHA loans could be delayed. The IRS still collects taxes but may hold up refunds and audits.

Impact on Benefits and Assistance

Programs considered “mandatory spending” are more insulated, but shutdowns still create problems for applicants and agencies.

Social Security: Checks go out as usual, but services like issuing new or replacement cards face delays.

Veterans’ benefits: Health services and benefit payments, including the GI Bill, are protected. But other programs, like job training, may slow down.

Food assistance: SNAP is funded for about 30 days, but could run into problems if the shutdown lingers. The WIC program is especially vulnerable and could run out of money quickly.

Student aid: Pell Grants and other federal student aid continue for now, but new applications and administrative work may get backed up.