As Congress shuts down, Americans need a financial rebound

Photo: Alexander Grey

Recent headlines have buzzed about the U.S. Government shutting down yet again. But so what?

As President Trump announced the official halt of the government on October 1, the United States is now facing a historic crossroads. At the center of the dispute are disagreements over healthcare subsidies and spending cuts, where Republicans are pushing for extended funding, while Democrats are fighting back.

With this new deal, federal agencies will stop receiving funding. That means millions of federal workers and pre-retirees will lose their money as their vital source of income will be stripped away from them. In short, not only will Washington be affected, but American citizens everywhere will begin to feel the repercussions play out.

For people already living from paycheck to paycheck, the impact is immediate. According to CBS News, a study found that about 59% of Americans in 2025 don’t have enough savings to cover an unexpected $1,000 emergency expense. So when there is a governmental delay, everyday households are left spiraling into financial stress.

For the broader economy, shutdown threats create ongoing uncertainty. Markets react, businesses fall under the rug, and taxpayers ultimately shoulder the costs. 

Adding onto the issue, just like in the 2018-2019 shutdown, the Congressional Budget Office reported that it cost the U.S. economy $11 billion, mainly due to individuals reducing their spendings in response to loss of pay. If the trend persists, America could see a similar—if not worse—reality.

Despite the national chaos, here’s the much harder truth: If the government gridlock has already happened, what’s next for the money?

Practical steps to recovery

On one bright side, moments like this call for a financial planning reset. Having an emergency fund, managing debt responsibly, and knowing where your money is going, can mean the resounding difference between panic and resilience, even when the government falters.

As Michael A. Scarpati puts it, a financial expert and CEO of RetireUS, a shutdown does not have to derail your financial plans. If anything, it’s an opportunity to take proactive steps now so that you can sustain your life, especially for those who are approaching retirement.

One way to cushion the disruption is by practicing financial consciousness, Scarpati suggests. This is the idea of becoming aware of your finances and making decisions that will align with your long-term priorities.

Being financially conscious starts with taking a hard look at your spending habits. It means not just budgeting, but being honest with yourself in terms of how you allocate your money. By understanding where the expenses are, it reduces the need to scramble when unexpected moments arise.

For those with only one income stream, this might also be a good time to start diversifying your earnings. Perhaps you might consider a side gig, freelance work, or part-time ventures to provide you with the extra support. You may think you don’t need it, but it’s a small step toward financial security during economic crises.

More than ever, during governmental setbacks, this is also your call to build a consistent financial routine. There shouldn’t be a national warning to initiate action, but instead, you should be creating a review process every few months or so. Have the willingness to check in on your goals, and if you notice you’re behind, adjust your strategy to keep yourself on track.

Action matters now

Even if the government lacks financial strength, you have the power to earn that control back. But that transformation only begins if you can stay vigilant to the financial complexities at stake.

Whether you are nearing retirement or still well in the workforce, don’t let another economic halt like this one tear your financial future apart. At the very least, your life can continue as long as financial consciousness becomes the backbone of your story.

The situation in Washington might be experiencing an all-time tragedy. But yours can play out differently if you have the mindset to do so.