Are banks Open During the Government shutdown? Here’s What You Need to Know
WASHINGTON - As of today, October 1, 2025, banks across the United States remain open despite the government shutdown that began at 12:01 a.m. ET. While a lapse in federal funding impacts numerous government services, financial institutions are generally considered essential and continue to operate. Though,customers seeking loans backed by government agencies may experience processing delays.
The government shutdown stems from a failure by lawmakers to reach a funding agreement before the October 1st deadline, with President Donald Trump and congressional Democrats trading blame over health-care policy changes. despite the political impasse, the financial sector’s continued operation is crucial for maintaining economic stability.
How the Shutdown Could Affect Banking Services
While banks themselves are open, certain services reliant on government backing could be affected. The Department of Veterans Affairs (VA) for VA loans, and the Small Business Management (SBA) for business loans may experience processing delays.
Essential services like ATMs, online banking platforms, and mobile banking apps remain fully functional. Mail delivery, Social Security payments, and court operations are also continuing during the shutdown.
However, broader economic disruptions stemming from the shutdown could indirectly impact banking. For example, widespread travel delays and potential staffing shortages at airports – where air traffic controllers and TSA agents are deemed essential but might potentially be working without pay or choosing not to report due to financial hardship – could affect consumer spending and economic activity. Similar disruptions occurred during the 2019 government shutdown, with TSA agents absent for financial reasons.
