Potential U.S. Government Shutdown May Affect Holiday Travel
As the U.S. approaches a potential government shutdown just days before Christmas, holiday travel could face significant disruptions, although holiday shipping is expected to remain unaffected. Lawmakers were still attempting to negotiate a deal to prevent the shutdown slated to begin at 12:01 a.m. Saturday, following President-elect Donald Trump’s disapproval of a bipartisan funding bill.
This looming shutdown, which would be the first since a 35-day halt under the Trump administration in 2019, could heavily impact air travelers during one of the busiest travel periods of the year. The 2019 shutdown resulted in an estimated $3 billion loss for the U.S. economy, according to the Congressional Budget Office, and similar impacts could unfold if another shutdown occurs.
During the last shutdown, the Transportation Security Administration (TSA) saw significant staff shortages as employees, though deemed essential, went unpaid and some chose not to report to work. This led to increased wait times and bottlenecks at airport security checkpoints, a situation that could repeat itself given the TSA’s projection of a 6.2% increase in screening volumes this holiday season. TSA Administrator David Pekoske has cautioned that extended shutdowns could exacerbate delays at airports, potentially leading to longer lines and wait times.
On the ground, the U.S. Postal Service, an independent entity funded by its sales and services rather than tax dollars, reassured that its operations would continue as normal, even during a shutdown. This means holiday deliveries are likely to be spared from direct impacts. However, deadlines for deliveries to arrive by Christmas have already passed for some services, with only priority mail express remaining an option until December 21.
Social Security payments, which benefit nearly 73 million people, would also not be interrupted, as they are funded through a mandatory program independent of the annual appropriations process. However, services provided by the Social Security Administration might see delays due to reduced staffing levels, already strained by budget cuts.
In the financial markets, a government shutdown could add to the volatility experienced in recent weeks. The stock market has been sensitive to various economic signals, including decisions by the Federal Reserve. The prospect of a shutdown adds another layer of uncertainty, potentially triggering brief but intense reactions from Wall Street. Mark Hackett, chief of investment research at Nationwide, described the potential combined impact of a government shutdown and other economic factors as akin to “two cans of gasoline being thrown on a fire.”
As the deadline approaches, the potential shutdown holds considerable implications for holiday travel, government services, and financial markets, highlighting the broader economic and personal impacts of political stalemates in Washington.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com