What the 2025 government shutdown means for your finances

Navigating the 2025 government shutdown: What it means for you and your money

The federal government shut down on October 1, 2025 after the White House and lawmakers failed to reach a spending agreement. While government shutdowns cause uncertainty, banks are not affected. FDIC-insured banks such as Citizens and the Federal Reserve operate independently, ensuring uninterrupted access to checking, savings and digital banking services.

During past shutdowns (including the 34-day shutdown from 2018 to 2019) banking services remained stable, with no disruption to deposits, ATMs or online banking. This time around, you can continue to rely on your bank for your everyday financial needs.

Everyday banking: Continued access to your checking, savings and budgeting tools

During a federal government shutdown, your money remains safe, banks stay open and digital services continue to operate. Bank ATMs, mobile apps and direct deposits should be unaffected for non-government employees.

However, thousands of government workers may face income interruptions. If you are affected by a shutdown-related furlough or a paycheck delay, consider these immediate financial steps:

• Cut your spending to the essentials and save as much money as you can 
• Prioritize essential bills: housing, food, utilities and car loans 
• Contact your creditors and landlord to let them know your situation 

One area of contention in the government's budget talks is the extension of subsidies for health insurance premiums for Affordable Care Act (ACA) enrollees. If those subsidies expire at the end of the year, average premiums could more than double, according to some estimates. If this impacts you, compare health care plans carefully during open enrollment. Consider high-deductible plans for lower premiums and adjust your budget accordingly for higher health care expenses. 

If you're facing an interruption to your income or potentially higher health insurance costs, be proactive about cutting back on your spending. Our bankers are here to help you plan through this uncertainty.

Students and parents: Navigating student loans and education costs

During a shutdown, federal student loan servicing continues and existing payments remain scheduled. However, new loan applications, verifications, Free Application for Federal Student Aid (FAFSA) processing and federal aid disbursements may be delayed. Student loan forgiveness applications to the Department of Education may also face processing delays. 

If you need payment flexibility or budgeting support during the shutdown, we’re here to help. We’re working with students and families to keep them on track with their education, even in uncertain times.

Homeowners and homebuyers: What’s happening with mortgages, home buying and selling?

If you’re buying or selling a home, federal loan programs, including those from the Federal Housing Administration (FHA) and Department of Veteran Affairs (VA), may be delayed. Timelines for title verification and flood insurance may also be delayed. 

Both buyers and sellers should stay in close contact with their mortgage advisors. For Citizens customers who are buying, selling or refinancing, we’re here to guide you through every step of the way — even when federal systems slow down.

Credit card users: Flexible payment options and guidance are available

Credit card services will stay active during the shutdown. Your ability to make purchases, access rewards and manage your account online or through mobile apps will not be affected.

If an income interruption affects your ability to pay your balance, we can help. Contact us to discuss flexible payment options. We’re committed to helping you avoid missed payments, late fees or credit impacts whenever possible. Proactively reaching out can help you stay on track and avoid long-term financial strain.

Our customer support team is ready to work with you to find personalized solutions, whether that means adjusting your payment due date, setting up a hardship plan or offering financial guidance during this time.

Your money is safe during a shutdown — and we're here for you

While a government shutdown can create frustration and financial uncertainty, one thing you don’t have to worry about is your bank. Your money remains secure, your accounts remain accessible, and your financial tools — from mobile banking to automatic bill pay — will continue working as usual.

Citizens and other FDIC-insured banks are not tied to the federal funding process, and we remain fully operational and ready to support you. Whether you’re navigating income disruptions, planning for increased expenses or simply looking for guidance, our team is here.

Citizens is here to help our customers who have been impacted by the U.S. Government Shutdown.

• For mortgage assistance, call us at 1-800-234-6002.
• For all general assistance, call us at 1-888-438-9888.