The government shutdown is back and it’s quietly squeezing families, businesses and communities nationwide.
From contractors to postal workers and small business owners, these are people who depend on government funding or approvals to stay afloat. When federal offices close, the effects don’t stop at the Capitol they hit local paychecks, housing markets and even the price of healthcare.
This year’s shutdown follows months of instability and the loss of over 300,000 government jobs. But beyond the headlines, it’s the hidden costs that sting the most.
Here are seven ways this shutdown is hitting your households and businesses right now.
Higher healthcare premiums
For Houston families relying on Affordable Care Act plans, healthcare is about to get a lot more expensive. The ACA tax credits that help lower premiums are set to expire at the end of 2025 and because of the shutdown, Congress can’t extend them.
If that happens, the average enrollee could pay $1,000 more next year, with some seeing their premiums double. Texans make up a large share of ACA participants nationwide, so these higher costs could hit Houston’s working-class and self-employed families especially hard.
Your home loan or small business loan could stall
Trying to close on a house? You might be stuck waiting. The Federal Housing Administration and U.S. Department of Veterans Affairs offices have experienced delays, resulting in slower mortgage approvals for veterans and first-time buyers.
Small businesses, particularly minority-owned ones that rely on the Small Business Association, are also feeling it. Federal-backed loans and grants are on pause, leaving local entrepreneurs unable to secure funding or expand operations. Access to capital is already a challenge. These delays can make or break a deal.
Taxpayers are paying millions a day for lost time
Even though the government is shut down, taxpayers are still footing the bill. Most furloughed federal employees eventually receive back pay, even though no work gets done during the closure.
That’s costing the public about $400 million per day, according to the reports. In short, he shutdown is wasting money we’ll all end up paying back, without fixing a single issue in the meantime.
Businesses lose money and jobs
Houston’s economy is deeply tied to federal contracts, from NASA’s Johnson Space Center to local energy, tech and infrastructure firms. Many can’t move forward with projects because federal permits and certifications are on hold.
Unlike federal workers, contract employees typically don’t receive compensation for lost time. That means missed paychecks, layoffs and less spending in the local economy, which ripples through to restaurants, shops and service jobs across the city.
Key services are slowing or stopping
Government shutdowns hit where it hurts most: everyday services.
- SNAP (food assistance) applications are piling up.
- Social Security offices are operating on skeleton crews.
Veterans’ benefits are delayed, even if medical care continues.