The Big Thing We’re Watching: The Federal Government Shutdown
As we head deeper into October, the big story everyone in DC—and especially in long-term care—is watching is the federal government shutdown.
At the moment, most GOP legislators haven’t returned to Washington, and in the Senate, we’re seeing many of the same funding bills reintroduced without much progress toward compromise. That means the stalemate could last a while—and the impact on DC will be significant.
Federal workers, according to the White House, won’t be paid during the shutdown, and local mutual aid groups are already organizing to provide food and other necessities. For many of our neighbors, this isn’t a political event—it’s a paycheck issue.
Local businesses that depend on federal employees are bracing for another hit. Restaurants, childcare providers, and small retailers—many still recovering from earlier economic shocks—will feel the slowdown quickly.
Thankfully, DC government remains fully operational. These shutdowns are exactly why the city maintains a strong rainy-day fund. Still, the longer this goes on, the more pressure it will put on our local economy and the services people rely on.
Here’s a quick look at what this means nationally and locally:
Economic and Workforce Impacts
- Around 2 million federal employees could be furloughed or working without pay.
- Contractors—many of them small businesses—won’t receive back pay, which compounds the economic pain.
- Each week of shutdown costs the U.S. economy billions in lost productivity and consumer spending. The last long shutdown (2018–19) cost an estimated $11 billion, with $3 billion never recovered.
Public Services
- “Essential” services like the military, air traffic control, and Social Security continue, but often with reduced staff.
- Services like passport processing, federal housing programs, and research grants slow or stop altogether.
- National Parks and museums may close or operate with minimal staff, directly hitting DC tourism and hospitality businesses.
Social Programs and Public Health
- Programs like SNAP can operate for a short period but could run out of funds if the shutdown stretches into weeks.
- WIC nutrition benefits and HUD rental assistance are at particular risk.
- The CDC and NIH have to pause certain research and monitoring work, and the FDA may reduce food safety inspections.
What It Means for DC
- Thousands of federal workers live right here, so their missed paychecks ripple through our local economy.
- DC’s “shutdown reserve fund” will keep city government running, but prolonged shutdowns strain local budgets and delay federal grants that support housing, health, and senior services.
- Reduced tourism and transit revenue will add another layer of impact.
Medicare and Medicaid Updates (CMS)
The Centers for Medicare & Medicaid Services (CMS) will continue critical operations—funding Medicaid through the end of December, maintaining CHIP payments, and keeping the federal health marketplace open.
However, many functions will slow or stop, including:
- Routine facility inspections and complaint investigations (except those involving serious harm).
- Policy and rulemaking activities.
- Contractor oversight and beneficiary case services.
- Outreach, education, and call center support.
In short, while the immediate effects may not hit all at once, a prolonged shutdown would slowly drain resources and stability from our local and national systems—including the care infrastructure so many of our seniors and families depend on.
For those of us in the long-term care community, it’s another reminder of how interconnected our economy, government, and caregiving networks really are—and how important local resilience and advocacy remain when national systems falter.
— Neil Richardson
Coordinator, DC Coalition on Long Term Care