What happens to consumers when the government shuts down? | Wilnesh News

If the government shuts down in the days leading up to Christmas, holiday travel may take a hit, but holiday shipping will not be affected.

By Friday morning, lawmakers still scrambling to reach agreement This would avoid a U.S. government shutdown at 12:01 a.m. Saturday after President-elect Donald Trump strangled the U.S. government. bipartisan appropriations bill Wednesday.

Since the Trump administration took office in 2019, the government has never shut down. The 35-day budget standoff cost the U.S. economy an estimated $3 billion, according to the Congressional Budget Office.

If new closures occur in the coming days, its duration is anyone’s guess. But here are a few ways consumers may feel the impact, and how key services will continue to operate as usual.

But without the flow of funds, TSA employee paychecks will be stopped, which could result in many people being forced to stay home. If that happens, airport checkpoints could create bottlenecks during the busy holiday travel period, when the Transportation Security Administration (TSA) has projection The number of security inspections increased by 6.2%.

TSA Administrator David Pekoske said: “While our personnel are prepared to handle large volumes of travelers and ensure travel is safe, please be aware that extended closures may mean airport wait times. longer. Thursday warning.

During the last shutdown, TSA officer attendance at Dallas-Fort Worth International Airport increased by 300%, and airport security screener absenteeism nationwide rose from 3% to 10%. according to Tourism Economics Research Corporation.

The U.S. Postal Service is operating as usual during the closure, as independent entities typically Funded by own sales and servicerather than calculated as tax. As September 2023 outages approach (resolved hours before they begin), the Postal Service clarifies that it will be able to deliver packages uninterrupted.

However, Delivery time Thanks to ground advantages and first class mail, arriving before Christmas is a thing of the past this year. The Christmas deadline for Priority Mail delivery is approaching, December 21st.

Nearly 73 million people receive Social Security benefits will continue to receive their checks If the government shuts down. That’s because Social Security is considered a mandatory program that doesn’t rely on short-term funding pending on Capitol Hill.

But anyone who may need to seek help from the Social Security Administration may experience longer wait times as agency workers are furloughed. The agency’s staffing is already at its lowest level in 50 years, as House Republicans refused to increase funding for it in a package passed in September.

A government shutdown could lead to further turmoil in the stock market that it has already experienced difficult weeksthere is a higher risk of anxiety for those who focus on retirement accounts or stock portfolios before the new year. The Dow Jones Industrial Average recently fell for 10 consecutive days, its longest losing streak since 1974.

Wednesday’s news of a potential government shutdown — as Fed Suggesting plans to cut interest rates at a slower pace than initially expected – sending the Dow Jones plunging, with the index having its worst trading day since August.

Mark Hackett, head of investment research at Nationwide, said that after repeatedly surging to new highs in 2024, the market has begun to decline. There is a “callback.

Hackett said future government shutdowns themselves would typically trigger “a very brief emotional reaction on Wall Street and then nothing too big.” But he said the additional impact of the Fed’s decision has affected an already sensitive market, like “two cans of gasoline thrown on the fire.”