As the end of the federal fiscal year approaches, many Americans are wondering: Will there be another government shutdown?
With lawmakers in Washington still at odds over key spending priorities, the risk of a shutdown on October 1, 2025, is very real. Whether you’re a federal employee, contractor, or rely on federal programs, understanding how a shutdown might affect you is essential.
Here’s what you need to know — and what to expect if Congress doesn’t act in time.
Why a Government Shutdown Might Happen
Every year, Congress must pass funding bills to keep government agencies running. When lawmakers can’t agree on how to allocate funds, the government loses its authority to spend, triggering a shutdown under the Antideficiency Act.
This year, the deadline is midnight on September 30. Congressional leaders have been negotiating over spending limits, healthcare funding, and social program provisions. Unless they reach a deal or approve a temporary funding extension (known as a continuing resolution), many government operations will pause at the start of the new fiscal year.
Federal agencies have already begun preparing contingency plans — a sign that a lapse in funding is a real possibility.
What Happens If the Government Shuts Down
A government shutdown doesn’t mean the entire federal government stops working. Some essential operations continue, while others are scaled back or paused until funding resumes.
Federal employees
Hundreds of thousands of federal workers could be furloughed, meaning they’re placed on temporary unpaid leave. Others — such as those in national security, law enforcement, and public safety — must continue working even without immediate pay. Thanks to the Government Employee Fair Treatment Act of 2019, furloughed and working employees are guaranteed back pay once the shutdown ends.
Government contractors
Private-sector workers on federal contracts are often hit hardest. Contractors typically don’t receive back pay, even though their projects or work may be halted. This can cause financial strain for individuals and small businesses that depend on federal funding.
Public-facing services
Services like passport renewals, small business loans, and some permit processing may be delayed or paused. However, operations funded by service fees — like certain passport offices — may continue in limited capacity.
Health and research agencies
The Centers for Disease Control and Prevention (CDC) and National Institutes of Health (NIH) would likely furlough a large portion of their workforce. This could delay medical research, grant approvals, and public health data reporting.
Social Security, Medicare, and Medicaid
These programs continue during a shutdown because their funding is approved separately from the annual budget process. Recipients should continue receiving payments, though some customer service functions could slow.
Air travel and transportation
Air traffic controllers and TSA officers are considered essential, so flights will continue. However, travelers may experience longer wait times and delays in training or hiring due to paused administrative functions at the Federal Aviation Administration (FAA).
Economic data releases
Shutdowns often pause economic reports such as the monthly jobs report or consumer spending data, which can temporarily disrupt markets and policymaking.
How a Shutdown Could Affect You
Even if you’re not a federal employee, a government shutdown can still touch your daily life.
- Longer processing times for federal paperwork, licenses, or benefits
- Delays in small business loans and federal grants
- Travel disruptions due to reduced staffing or slower airport screenings
- Economic ripple effects in communities with large numbers of federal employees or contractors
The longer a shutdown lasts, the more significant these ripple effects become.
How to Prepare for a Potential Shutdown
If a shutdown occurs, a little preparation can help minimize stress and disruption.
- Stay informed. Monitor updates from reliable news outlets and your agency’s official communications.
- Plan financially. If you’re a federal employee or contractor, consider saving extra funds to cover potential delays in pay.
- Track pending applications. Follow up on passports, permits, or grants that could be delayed.
- Review your contracts. If your work depends on federal funding, check your agreements for force majeure or delay clauses.
- Seek legal advice if needed. If your job, contract, or benefits are impacted by a shutdown, consult an attorney to understand your rights.
Legal Context and Worker Protections
The Antideficiency Act prohibits agencies from spending money that hasn’t been appropriated by Congress. This is why many nonessential activities stop during a shutdown — agencies are legally barred from continuing them.
For federal employees, the Government Employee Fair Treatment Act of 2019 guarantees retroactive pay for both furloughed and working employees once the government reopens. However, contractors are not covered under this law and may need to pursue compensation through their employers or contract provisions.
If you believe your rights as a worker are being violated — such as being unfairly terminated, denied benefits, or pressured to work without proper classification — The Spiggle Law Firm can help you navigate your legal options.
The Bottom Line
The threat of a government shutdown is more than a political standoff — it’s a real event that affects millions of Americans. While essential operations like national defense, law enforcement, and Social Security will continue, many other services could be delayed or paused.
If you’re a federal employee, contractor, or small business owner, now is the time to stay informed and prepare.
At The Spiggle Law Firm, we understand how uncertainty around government operations can impact your livelihood. If you have questions about your employment rights, furlough protections, or contract obligations during a shutdown, our team is here to help you understand your legal options and protect what matters most.
