By AKEMI KONDO DALVI, CPA/PFS, CFP
Our current U.S. government shutdown is the 22nd recorded since 1976. So far, the stock market has shrugged off the shutdown as unconcerning. Perhaps traders have become accustomed to government shutdowns, but some economists worry the market may be too optimistic.
In the past, some government shutdowns have been as short as one day. Most recently the December 2018 through January 2019 shutdown was our longest on record, lasting 34 days.
You may be wondering how you will be affected by the government shutdown. Under a federal government shutdown, federal employees who are considered to provide essential services must still report to work, although they are not paid until the government reopens, meaning they need to live off savings temporarily.
Air traffic controllers are expected to work, allowing airports to remain functional. Social Security benefits are mandatory under law, so recipients of SSI benefits will not be affected, although services may be further delayed and offices may be closed. The U.S. Postal Service will not be affected by the shutdown, given they are an independent agency.
Medicare and Medicaid (MediCal in California) services will continue uninterrupted, but many pandemic-related programs initiated in COVID such as telehealth expired on Sept. 30, giving the appearance of reduced program benefits.
Borrowers of student loans will need to continue making loan repayments during the shutdown and the department will not issue any new education grants during the period. National parks remain open to the public, including restrooms and trash service, but emergency services may be limited.
The Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) will continue to provide benefits during the shutdown, “subject to the availability of funding.” It is currently estimated that such benefits will continue uninterrupted through October 2025.
Longer-term, a protracted standoff where Democrats and Republicans cannot come to consensus could lead to furloughs that turn into permanent layoffs. On Oct. 10, some federal employees missed a paycheck due to the government shutdown. On Oct. 15, some members of the military may also miss receiving a paycheck.
Missed payments to military and government employees have typically been avoided at all costs and are seen as high-incentive deadlines for both sides to come to an agreement. President Trump and members of Congress will continue to receive paychecks during a government shutdown, as their pay is constitutionally protected.
Details and developments continue to unfold daily. If you feel you are directly affected or could benefit from a sounding board on how to proceed during the government shutdown, please reach out to your Certified Financial Planner or CPA Personal Financial Specialist.
Whether you are exploring cash flow management, charitable gifting strategies, preparing for retirement, or navigating new tax policy changes, we’re here to help you make sense of it all.
Sources:
https://www.nbcnews.com/politics/congress/government-shutdown-2025-air-travel-social-security-impact-rcna235119
https://www.cmadocs.org/newsroom/news/view/ArticleId/50995/Federal-shutdown-disrupts-telehealth-Medicare-and-Medicaid-payments-continue
https://www.npr.org/2025/09/30/g-s1-90732/government-shut-down
Focus Financial Partners
Focus Financial Partners
The opinions expressed above are solely those of Kondo Wealth Advisors, Inc. (626-449-7783, info@kondowealthadvisors.com), a Registered Investment Advisor in the state of California. Neither Kondo Wealth Advisors, Inc. nor its representatives provide legal, tax or accounting advice.