How a federal government shutdown impacts Indiana
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Illustration: Aïda Amer/Axios
An impending federal government shutdown could impact services and paychecks for thousands of Hoosiers as soon as this weekend.
Driving the news: Congress faces a Sept. 30 deadline to fund the government. Deals can — and do — come together quickly, but it's not looking good.
The big picture: If a government shutdown takes place, federal functions deemed nonessential could be suspended, affecting health programs, government assistance, Food and Drug Administration inspections, and small business loans, Axios' Sareen Habeshian writes.
- Paychecks will be paused for all federal employees, whether they're deemed essential or not.
Zoom in: More than 20,000 Hoosiers are employed by the federal government, per WFYI.
- Hundreds of thousands more rely on federal aid programs — including nearly 150,000 women, children and infants at risk of losing WIC benefits, according to the White House.
Zoom out: Mail delivery, Social Security payments, and health care for veterans and Medicare and Medicaid recipients will continue across the nation.
- Commercial air travel will also continue, though TSA and air traffic controllers will be working without pay, which could lead to staffing issues if people decide not to show up for work.
Yes, but: The Small Business Administration, the Federal Housing Administration, the Department of Housing and Urban Development, and the Department of Agriculture will stop processing some new loans, per a memo from the Democratic Policy and Communications Committee, an advisory arm of congressional Democrats.
- Supplemental Nutrition Assistance Program funding will continue through October, but a federal program that offers food aid and other services to low-income mothers would be reduced immediately.
- The Social Security Administration would pause benefit verifications and earnings record corrections and updates, and Medicare would be unable to send replacement cards.
Plus: National park facilities that require staff, including restrooms, visitors' centers, and campgrounds, would be paused during a shutdown.
- That could mean reduced access and services at the Indiana Dunes in northwest Indiana.
What we're watching: Gov. Eric Holcomb told reporters at an event this week that the state was preparing for a shutdown while hoping that "cooler heads prevail."
What they're saying: Paul Helmke, professor of practice at the IU O'Neill School, said most people probably won't feel the effects of a brief shutdown.
- "If the shutdown goes for more than a few days it could end up impacting the economy significantly," he said. "It could affect the nation's credit rating. It means there's going to be lost productivity, lost buying power and that could end up impacting all of us."