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APGovernment shutdown 2025 update Government shutdown 2025 impact: The government shutdown has stretched into its 36th day, now the longest in US history, leaving millions of Americans feeling the strain due to missed paychecks, grounded flights and delayed services, the financial and emotional toll is growing as Washington remains at an impasse.Trump Government Shutdown UpdateThe Trump administration has said it would restart Supplemental Nutrition Assistance Program (SNAP) benefits but only at half the normal payout, following a court order requiring the program to continue operating, as per a report. However, confusion deepened when Trump appeared to contradict his administration’s filing, suggesting the US would not fund SNAP, though the White House later said it was cooperating with the court, as per a Yahoo Finance report.Meanwhile, travel disruptions worsened. Staffing shortages caused more than 5,000 flight delays across major airports on Sunday, as per the report. Transportation Secretary Sean Duffy warned that if the shutdown drags into next week, parts of US airspace may need to close for safety reasons, as per the Yahoo Finance report.As lawmakers and the President search for a path forward, Americans are wondering what this all means for their finances, from Social Security and student loans to mortgages and investments, as per the report.ALSO READ: After Amazon and Meta, IBM to layoff 2700 people - experts say more tech sackings will happen this yearLive EventsSocial Security, Medicare, and Food AssistanceThe good news for retirees and healthcare recipients is that Social Security checks will continue, and Medicare and Medicaid will remain unaffected by the shutdown, as per the Yahoo Finance report. Benefits will still be paid, ensuring millions of seniors continue to receive monthly payments and healthcare access, as per the report.However, programs like SNAP and WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) are facing funding pressure. While they can operate for short shutdowns, prolonged funding gaps could force reductions, as already seen with SNAP’s half-pay disbursement, as per the Yahoo Finance report.ALSO READ: Who is Michael Burry - the Big Short legend who has rattled Nvidia and PalantirStudent Loans and Education ProgramsStudent loan borrowers may face delays and limited support. Many employees at the Department of Education have been furloughed following major workforce cuts earlier this year, as per the Yahoo Finance report.While mandatory-funded programs such as Pell Grants and Federal Direct Student Loans can continue for now, reduced staffing could slow down loan processing, forgiveness applications, and grant reviews. Borrowers may also find it harder to reach support staff for help.ALSO READ: Why US market is down today? Key points investors need to take note as Dow, S&P 500 and Nasdaq fallTravel and Transportation DisruptionsEssential federal workers like airport security officers and air traffic controllers are still on the job, but shortages are causing delays at airports nationwide, as per the Yahoo Finance report. Travelers are urged to expect longer lines and slower service.Passport and visa services remain open as long as fee funding lasts, though delays are possible. National parks, museums, and other federal attractions may close or operate on limited hours, as per the Yahoo Finance report.Economic Uncertainty and Market ImpactThe broader economy faces growing risks the longer the shutdown continues. Delayed government payments could temporarily reduce spending, while interruptions to key economic data releases may affect Federal Reserve decisions, as per the Yahoo Finance report.Experts warn that without updated inflation and employment data, the Fed could misstep on interest rate changes, potentially worsening market volatility.ALSO READ: BTC crash alert: Why Bitcoin price dropped to $107,000 and why experts warn it could fall to $88,000Housing and Mortgage EffectsHomebuyers relying on federal-backed loans are already feeling the impact. FHA and VA loan applications are still being processed, but reduced staffing has led to delays, as per the report.For many borrowers, any step requiring manual federal verification, like income checks, may take longer, potentially pushing home closings past deadlines, as per the Yahoo Finance report. USDA loans, used by many rural and low-income buyers, have been completely paused.Mortgage rates, however, may see a slight dip. Historically, during shutdowns, investors flock to US Treasurys, pushing down yields and nudging mortgage rates lower by about 0.125 to 0.25 percentage points, as per the Yahoo Finance report.Investments and Retirement AccountsThe stock market could face short-term volatility, with investors uneasy over uncertainty surrounding the Fed’s policies. Financial experts suggest that long-term investors avoid panic selling, as markets typically recover once stability returns, as per the report.Gold prices remain high, with the precious metal continuing to serve as a safe haven during market turbulence. Treasury interest payments will also continue without interruption, as per the Yahoo Finance report.Federal Paychecks and ServicesHundreds of thousands of nonessential federal employees have missed multiple paychecks and won’t be paid until the shutdown ends. Contractors and private firms working with government agencies may also cut hours or furlough workers.Military commissaries and some Veterans Affairs offices have been temporarily closed, but VA hospitals and benefits remain operational, as per the Yahoo Finance report.Mail delivery and federal courts continue unaffected, while the IRS operates with a smaller workforce, potentially slowing responses but still collecting taxes, as per the report.FAQsIs Social Security affected by the government shutdown?No. Social Security payments will continue as usual, and Medicare and Medicaid benefits are not impacted by the shutdown, as per the Yahoo Finance report.Will SNAP food benefits stop during the shutdown?SNAP will continue, but payments have been cut to half the usual amount following a court order, as per the Yahoo Finance report.Add as a Reliable and Trusted News Source Add Now! 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