A potential government shutdown could cause major disruptions to holiday travel, delay essential services, and slow economic growth, while essential workers would continue working but face delayed pay. President-elect Donald Trump and Vice President-elect JD Vance are urging Republicans in Congress to reject a stopgap funding bill that would keep federal agencies running through March 2025. If Congress fails to pass the funding bill by Friday, several government functions could be affected, particularly during the Christmas season. Here’s a breakdown of what may remain open and what could close if the shutdown takes effect.
Trump’s Shutdown Demands and Government Impact
Trump and Vance have criticized the stopgap bill on social media, stating it fails to address critical issues such as raising the national debt ceiling and reducing certain government spending. Democratic Leader Hakeem Jeffries has accused House Republicans of pushing for a shutdown that would harm everyday Americans.
If a shutdown occurs, it could significantly affect air travel, law enforcement, and other public services. The disruptions would mirror those of the 2018-2019 shutdown during Trump’s first term. While essential workers would remain on the job, many federal employees could face furloughs and delayed pay, which would be issued retroactively once operations resume.
Holiday Travel Affected by Potential Shutdown
Travelers could face delays in obtaining government services, such as passports. While the air travel system may continue to operate, essential staff like air traffic controllers and TSA workers won’t be paid until the shutdown ends, potentially leading to longer wait times at security checkpoints. Reduced staffing might also cause flight delays and cancellations, as well as delays in customs and border protection. The travel industry could experience strain, increasing costs and impacting holiday spending.
What Remains Open and What Closes
- Postal Service: Unaffected, as it operates independently of government funding.
- Military: U.S. military personnel remain on duty, though half of the Pentagon’s civilian workforce may be furloughed.
- Social Security and SSI Payments: Continue, but responses to inquiries may be delayed.
- Medicare and Medicaid: Benefits continue, with potential delays in customer service.
- Veteran Services: Medical care and benefits continue for veterans.
Services That May Be Affected
Smithsonian museums and the National Zoo could close, as they depend on government funding. Non-essential functions like passport processing, firearm permits, and student loan processing could halt. Air traffic controller training would stop, and TSA lines may grow longer due to reduced staffing.
Economic Impact
A shutdown could slow economic growth, with Goldman Sachs estimating a 0.2% weekly reduction in GDP. Meanwhile, Wall Street stocks saw a significant drop on Wednesday after the Federal Reserve revised its 2025 interest rate forecast downward from four cuts to just two.
