To help you stay financially secure during such challenging times, Cabrillo offers the Cabrillo’s Advanced Relief Effort Program* (C.A.R.E.) 

 

What Triggers a Government Shutdown?

A government shutdown occurs when Congress fails to pass, and the President fails to sign the necessary appropriations bills to fund the federal government. These bills are essential to keeping government agencies and programs operational. Without them, various government functions come to a halt.

Effects on Government Services

One of the most immediate and visible impacts of a government shutdown is the interruption of government services. While essential services like Social Security and Medicare continue to operate, many non-essential services are temporarily suspended.

During a government shutdown:

• National parks may close, affecting tourism and local economies.
• Government websites and online services may become inaccessible.
• Passport processing and approval of new applications may be delayed.
• Small business loans and government benefits processing may experience delays.

Economic Consequences

Government shutdowns can also have a significant impact on the economy. They disrupt economic activity, reduce consumer and business confidence, and can even lead to job losses. During a government shutdown, the following economic consequences may occur:

Unpaid Leave

One of the most immediate and tangible consequences of a government shutdown for federal employees is the prospect of furloughs and unpaid leave. During a shutdown, federal agencies are forced to cease non-essential operations, leading to the furlough of many employees. These furloughed workers are placed on temporary, unpaid leave, uncertain when their regular paychecks will resume.

Financial Hardships

The absence of regular income can lead to significant financial hardships for federal employees. Mortgage payments, utility bills, and everyday expenses continue to accrue, even when paychecks are put on hold. This financial strain can be particularly challenging for those living paycheck to paycheck, making it crucial for federal employees to plan ahead and build emergency savings.

Prepare for Financial Security with C.A.R.E.

In light of potential government shutdowns in 2023, it's crucial to stay prepared. Cabrillo offers the Advanced Relief Effort Program (C.A.R.E.) with unique advantages, such as a 6-month repayment period featuring zero interest for the initial 60 days. By applying now, you can secure pre-approval for emergency funds through a line of credit, ensuring you're ready before any crisis occurs.*

Learn more about C.A.R.E. today and act before shutdown strikes.

*Eligibility requirements apply. Availability of funding is periodic and related to the status of the applicable declared emergency. Proof of hardship is required. Subject to credit approval. All offers and loan program are subject to change and may be terminated without notice.