The Impact of Government Shutdowns on Markets and IPOs
The House has approved a funding extension to avoid a government shutdown, but if it fails in the Senate, the consequences could be catastrophic. Shutdowns disrupt various federal agencies and services, affecting schools, childcare, food programs, rural America, Social Security benefits, Medicare, post offices, and travel. Programs like Head Start, SNAP, and WIC would be immediately endangered, while the Education Department would face furloughs and reduced staffing. Rural farmers would experience delays in marketing loans, and USDA-backed housing loans for rural families would cease. Social Security benefits would continue with some temporary suspensions, and the U.S. Postal Service would remain operational. However, air traffic controllers and TSA agents would work without pay, potentially causing travel delays during the busy Thanksgiving period.