Federal workers face furloughs, and students may see FAFSA delays as Congress remains deadlocked on Medicaid and ACA subsidies.
Jonathan Roman | Staff Writer
The U.S federal government is currently in a government shutdown for the first time in seven years, as Congress remains divided.
Yearly, Congress must pass a federal spending bill, allocating money to federal agencies and programs.
The government is currently shut down over a clash on healthcare. Democrats want an extension of the Affordable Care Act subsidies added to the spending bill, with a change to Medicaid funding. It’s noteworthy that millions are enrolled in the ACA, and 22.4 million Americans rely on subsidies to receive coverage. Republicans prefer to pass a “clean spending bill” with no attachments or expansion in healthcare. Both parties continue to pass jabs at each other with no end to the shutdown in sight.
If Congress fails to pass a budget, federal agencies and programs that are deemed “non-essential” are prohibited from spending money, and millions of federal workers will go without paychecks. TSA, air control, ICE agents, and non-active military personnel will continue to work without pay. Federal workers will be back paid once the government is reopened. National parks and museums may close temporarily, and processing of visas and passport services may be delayed.
Congress remains in a stalemate, as the White House signals it may begin a mass firing of federal workers. Previously, during President Trump’s first term, the government remained shut down for a record 35 days, resulting in $3 billion in US economic loss.
Students and families applying for federal financial aid may also feel the effects of the shutdown. While FAFSA remains available online and Pell Grants and federal student loans are still being processed, support services could slow down.
For example, FAFSA applicants who need tax transcript verification from the IRS may experience delays, and Department of Education call centers or appeal processes could be harder to reach as many employees are furloughed. In the short term, core aid programs will continue, but a prolonged shutdown could cause backlogs and uncertainty for students relying on federal assistance to pay for school.
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