As you may have heard, as of October 1, 2025, the U.S. federal government has officially entered a shutdown following a lapse in funding legislation. Federal government shutdowns can have wide-reaching effects on everyday life, including your finances, travel plans, and access to essential services. Whether you’re a government employee, a small business owner, in the middle of a mortgage process, or simply planning a trip, it’s important to understand how these disruptions might impact you.
Here’s what you need to know:
Financial Services
Several federal agencies play a key role in financial operations, and many of them scale back during a shutdown:
If you're in the process of buying a home or refinancing, a shutdown could cause complications:
While many benefit programs continue to operate during a shutdown, some may experience disruptions:
Planning a trip or needing official documents? Here's what to expect:
If you're affected by the shutdown, it’s important to stay proactive:
Here’s what you need to know:
Financial Services
Several federal agencies play a key role in financial operations, and many of them scale back during a shutdown:
- IRS: With limited staffing, expect delays in tax return processing, refunds, and customer service responses.
- Small Business Administration (SBA): Most loan approvals for SBA loans are paused, which could affect funding for small businesses.
- Federal Courts: Operating on reserve funds for now, but may reduce services if shutdown continues for an extended period.
- National Flood Insurance Program: New policies will not be issued, potentially affecting property transactions in flood-prone areas.
If you're in the process of buying a home or refinancing, a shutdown could cause complications:
- Furloughed Government Workers: If you’ve been furloughed, you may not be able to close on your loan until employment or pay resumes.
- IRS Verification Delays: The IRS may not be able to verify tax returns, which can hold up mortgage approvals.
- Government-Backed Loans: Mortgages backed by Fannie Mae, Freddie Mac, HUD, FHA, and VA may face delays. If the shutdown persists, affected borrowers will receive guidance on how to appeal for assistance.
While many benefit programs continue to operate during a shutdown, some may experience disruptions:
- Social Security, Medicare, and Medicaid: Benefits will still be distributed, but processing delays are possible.
- SNAP Benefits: October payments are being processed, but future distributions could be uncertain depending on how long the shutdown lasts.
- Military and Law Enforcement: Active-duty and essential personnel continue to serve, but may not be paid until the shutdown ends.
Planning a trip or needing official documents? Here's what to expect:
- Passport and Visa Services: These services are still running, but staffing shortages may lead to delays.
- Air Travel: TSA agents and air traffic controllers are working without pay, which could result in longer lines and slower service.
- U.S. Postal Service (USPS): Mail delivery continues as usual, as USPS is independently funded.
If you're affected by the shutdown, it’s important to stay proactive:
- Contact your lender if you’re in the middle of a mortgage process.
- Reach out to your benefits provider for updates on your specific situation.
- Speak with a BankFive representative for personalized guidance. We’re here to help you navigate any financial disruptions and keep your financial plans on track. Don’t hesitate to reach out to our mortgage team, business team, or customer service team.