Ten days into the government shutdown, it’s most likely gotten your attention. The longer it lasts, the more serious it seems, and you may be starting to wonder how it could affect you — if at all.

Of course, if you’re one of the many federal government workers that has been furloughed or has to keep working without a paycheck, you’re already more than aware. The Congressional Budget Office estimates that 750,000 federal employees could be furloughed each day the shutdown lasts. Meanwhile, news outlets are reporting that a White House memo is throwing guaranteed backpay into question.

But what about other aspects of your life, whether you work for the government or not? Leaving aside all the fraught political convos, here’s the scoop on how it may or may not affect your personal finances.

For people who have Medicare, Medicaid, or Obamacare health insurance: Since Medicare and Medicaid benefits are considered mandatory spending, those will keep going (same with Social Security). And if you have Affordable Care Act (aka Obamacare) coverage from a government exchange rather than an employer, that’s not affected either — for now.

However, legislators still have to decide whether to extend the enhanced ACA premium tax credits, COVID-era subsidies that are set to expire this year. That debate is actually one of the main reasons behind the shutdown. If they expire, subsidized enrollees would pay an average of $1,904 in premiums in 2026, more than double the average $888 they’re paying this year, according to KFF, a health policy research firm.

For federal student loan borrowers: Federal student loan bills are still due (womp), and unlike the Department of Education, most student loan processing companies are still operational, so service disruptions should be minimal. There are already backlogs processing enrollment in new repayment plans, however, and the shutdown will mean further delays.

For folks with upcoming travel plans: Consider getting to the airport extra early (and maybe even buying a reimbursable ticket, if possible). Air traffic controllers and Transportation Security Administration officers are considered essential federal workers, but they’re working without paychecks, which is contributing to staffing shortages and delays.

For investors: Key economic data that tends to move the stock market, like the monthly jobs report, has been delayed, leaving investors with less information at an already uncertain time for the economy. But historically, the market has weathered shutdowns quite well.

For the economy: The longer the shutdown, the more ripple effects it could have, particularly as stopgap options fade. For example, if the shutdown lasts longer than a month, the distribution of benefits like SNAP food assistance could be delayed. And when a shutdown drags on, businesses needing federal permits or loans may postpone hiring and investment decisions.

That's why any broad impact to the economy will depend on the length and extent of the shutdown. According to the Congressional Budget Office, the five-week partial shutdown that ended in January 2019 delayed discretionary spending and other services and about $3 billion worth (an estimated 0.02% of annual GDP) was never recovered.

Related Reading

The Shutdown Is Already Squeezing These Businesses (The Wall Street Journal via MSN)

Military Families Brace For Missed Paychecks As Shutdown Impacts Are Already Accumulating (CNN)

The Government Shutdown Keeps Snarling Air Travel. Officials Say It Could Get Worse (NPR)

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