WASHINGTON, D.C. — The federal government shut down today after lawmakers failed to agree on a funding bill. From day one, The Trump administration has been on a crusade to constrict the essential government services that consumers rely on. This government shutdown will highlight the damage done to consumers when agencies are denied the ability to protect the American people.
CFA experts provide statements on how this government shutdown will impact consumers:
“The Administration has systematically undermined agencies and fired federal workers over the last nine months, all while taking away essential housing protections and worsening our housing crisis,” said Sharon Cornelissen, Director of Housing. “This government shutdown will further paralyze HUD and cease the little fair housing work it was still doing. Thousands of home closings will grind to a halt – consumers in flood zones will be unable to buy or sell homes – as funding for the National Flood Insurance Program runs out. Broad, affordable, and fair access to housing is impossible without a well-functioning government, but this Administration has done nothing but undermine the essential housing programs and protections that people across the US rely on every day.”
“This shutdown is not just political theater, it’s a continuation of the relentless assault on consumer protection,” said Erin Witte, Director of Consumer Protection. “By halting the very agencies that safeguard families from predatory lenders, unfair fees, and corporate abuse, the administration is abandoning Americans at the height of a widespread affordability crisis.”
“The shutdown is official today, but in reality, the administration sidelined the CFPB some time ago,” said Adam Rust, Director of Financial Services. With the agency’s supervisory and enforcement work on hold, rulebreakers are being given free rein to take advantage of people with impunity. Ensuring the safety of financial services is not free, but laying off government workers charged with protecting the financial security of Americans could be far more expensive. When the government closes its doors, fraudsters stay open for business.”
“The Trump administration has gutted staff and attacked the independence of the SEC from its first day, said Corey Frayer, Director of Investor Protection. “We are about to learn the hard way what could happen to the American financial system if this administration gets its wish to end enforcement of the securities laws altogether.”
“Each day without rigorous enforcement and expansion of our consumer protections presents a new opportunity for online scammers, data brokers who sell your sensitive location, and AI companies who refuse to sacrifice even a drop of engagement for common-sense moderation that could save teenagers’ lives,” said Ben Winters, Director of AI and Data Privacy. The defanging of the FTC and CFPB these last 9 months have been devastating for consumers, and a shutdown leaves people with even less power and less hope of a fair marketplace.”
“The government shutdown will make our food less safe. USDA inspectors will continue on the job, but many may soon be working without a paycheck,” said Thomas Gremillion, Director of Food Policy. “The situation is worse at the U.S. Food and Drug Administration. FDA is suspending routine inspections of food facilities, assigning a skeleton crew inspectorate to conduct “for cause inspections” only. But when “cause” arises may not become apparent for some time because the Centers for Disease Control & Prevention (CDC) is suspending analysis of surveillance data for reportable foodborne illness. This means that authorities may be slower to solve a nationwide outbreak like the one caused by Boar’s Head Listeria contaminated deli meats last year, which killed 10 people.”
“The shutdown is the latest in a series of blows to the Bureau of Labor Statistics (BLS),” said Ethan Weiland, Research Associate. “The government shutdown means BLS has paused all operations, such as the collection and publication of crucial inflation data. With many consumers struggling to pay their bills, now is not the time to be flying blind.”
“The National Flood Insurance Program provides flood insurance for 4.7 million Americans, but this shutdown means it can’t write new policies or renew existing policies,” said Michael DeLong, Research and Advocacy Associate. “People who need protection against flooding are being left completely exposed. If a disaster strikes, they could lose everything.”
“While many essential services continue during a shutdown, everyday Americans can still feel the ripple effects in very real ways,” said Amy Miller, Program Manager of America Saves. “Delays in paychecks, benefits, or services, even for a short period, can disrupt household budgets and create financial stress. For families already working hard to make ends meet, even a small interruption can make it difficult to cover essentials like rent, utilities, or groceries.”
“Veterans will typically continue to receive their core benefits during a shutdown, but that doesn’t mean they’re unaffected,” said Krystel Spell, Program Manager of Veteran Saves. “Delays in disability claims, GI Bill stipends, or appeals can create real financial stress, especially for those transitioning out of service and adjusting to new expenses like housing and health care.”