While it may take a while for the full impact of this week’s government shutdown to show up, we’ve cataloged some of the ripple effects on business operations that organizations may feel.
Business travel: Although the TSA and air traffic controllers are expected to show up for work—without pay—as the weeks potentially drag on without a paycheck, the previous government shutdown saw some air traffic controllers calling in sick. The 2018 government shutdown slowed air travel; getting air travel back to normal was, in part, why President Trump made moves to end the last shutdown in 2019, the longest in history at 35 days.. And if your business travel involves going overseas, good luck getting a passport during the shutdown.
Imports and tariffs: The Department of Homeland Security says it will continue collecting tariffs, aka import taxes, so you’re not getting out of those any time soon. This is a shift as tariff investigations are now considered national security and received an exemption to keep operating during the shutdown. Customs and Border Protection will also largely continue, including ICE as it’s considered essential, according to DHS.
Economic data: It’s going to be a lean time for government data. The Census Bureau’s data collection will cease. The Bureau of Economic Analysis will stop producing reports on gross domestic product, consumer spending, inflation, and trade. And the Bureau of Labor Statistics will also shut down, right before this month’s jobs report was scheduled for release on Friday. Specifically for the Fed, those numbers help influence interest rate decisions. On the other hand, the Energy Information Administration will keep to its scheduled data collection and publishing.
News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.
Loans: New loan approvals from the Small Business Administration (SBA) will not be processed, but disaster lending and PPP loan forgiveness will carry on. The SBA is also furloughing 23% of its staff during the shutdown.
Financial regulators: The SEC will keep a few hundred staff on hand for urgent issues, but most IPOs and other corporate filings will stall until the government reopens, according to Reuters. The Federal Trade Commission will keep on roughly a third of staff to continue to evaluate merger requests from businesses, according to Bloomberg, but consumers will be unable to report fraud during the shutdown.
Taxes: The IRS will stay open as usual for the first five days of the shutdown, but what happens after that remains unclear.
Rapid fire: The Department of Agriculture will be shuttered all but for “safety inspections and some lab operations,” reported Reuters. The Department of the Interior will close, but permits for oil, gas, coal, and energy projects will continue to be processed, due to Trump’s January declaration of a national energy emergency via executive order. The Nuclear Regulatory Commission will stop granting licenses and completing inspections. The EPA will stop updating websites, approving permits, ad issuing activities, and following up on enforcements, unless exempted. The Post Office will keep normal operations as it funds itself through postage sales.