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Counting Pennies: Federal Workers’ Financial Survival Guide…

Counting Pennies: Federal Workers' Financial Survival Guide

Jesse Santiago lost his home because he fell behind on his mortgage payments and had to ration his food and medication during the last government shutdown five years ago.

Santiago, who has served as a TSA officer at Houston’s airport since 2002, is passionate about his work and takes great satisfaction in ensuring the safety of American passengers. But he is furious that Congress is once again on the verge of allowing a government shutdown, which would cause financial and emotional upheaval for him and his fellow federal employees.

Santiago, who lives in Cleveland, Texas with her husband, said, “Imagine serving the American people only to have to beg for food,” and added that they have been stocking up on canned beans and other nonperishable food in case this deadlock carries on. I will not work for the federal government if it means having to wait in food lines again.

If Congress is unable to reach an agreement on funding federal agencies by October 1, the salaries of several million government workers, including Santiago, would stop being paid. Some people, like Santiago, are considered essential and must report to work in spite of the strike. Until Congress approves a budget bill, others will be furloughed. This process took more than a month during the 2018–19 closure.

Concerned citizens in the hundreds have written to AWN about the impending shutdown. Many seniors expressed fear that they would not receive their regular Social Security payments, and other people expressed concern about attending excursions to national parks, including a bride-to-be whose wedding is scheduled for mid-October. (In truth, government shutdowns do not affect Social Security payouts.)

Some nonprofits have already offered financial support to federal employees hit by the shutdown. Chef Jose Andres has already pledged that his World Central Kitchen restaurants in Washington, DC, will feed federal workers during a shutdown, just as they did during the last standoff.

Federal workers take the lion’s share

Government workers and contractors are among those who suffer the most during a shutdown because neither group is compensated for their time spent working without pay. Many expressed worry that they and their families would have to go through another lengthy government shutdown like the one that just ended.

Carrie Martin, who works in the NIH’s financial department, is having a rough time dealing with the possibility of losing her paycheck. Inflation has increased the cost of food, housing, and other necessities, and in October she will have to start paying student loan payments of a little over $700 per month.

“Not knowing when I will get my next paycheck is very stressful considering I am living paycheck to paycheck,” said Martin, who received his master’s in health management from George Washington University this spring. Having to start paying back my college debts has made my financial situation ten times worse.

In addition, she noted how challenging it is to perform under such ambiguity. She and her coworkers have been staying late to finish out the current fiscal year and get ready for the next one.

“Preparing for something that may not happen takes a lot of energy out of you,” said Martin, who is still adjusting to living on one income after her wife passed away last year.

Others in the federal government have already begun making plans to reduce their outgoings.

Nicole, a federal law enforcement officer in southern Missouri, regretfully informed her son, whose sixth birthday is in early October, that she would be unable to celebrate the occasion with a party. Since he has recently started kindergarten and is making new friends, she planned to invite around a dozen youngsters. Instead of a big party, her son will celebrate with his parents, grandparents, and younger brother at home with cake and gifts.

“I’ll probably feel more sad than he will,” Nicole, who asked that her last name not be published because of the sensitive nature of her work, said. “I’d rather not have to dip into my savings to cover my expenses.”

Nicole said the family would have to make concessions, such as not enrolling her older son in after-school activities like basketball and painting, even though her husband will continue to be paid because he works in the restaurant sector. And they won’t bother with local autumn celebrations.

They saved money by eating out less, cutting back on their television package, and paying a fair amount in overdue fees during the previous closure. In addition, they had to borrow money from a credit union, despite the interest rate on the loan was 0%.

“That was probably one of the worst things we’ve gone through,” said Nicole, who must still go to work during a shutdown.

Rob, a federal police officer in Washington, DC during the time of the standoff in 2013, resigned due to the strain of his position. He worked long hours without knowing how soon he’d get paid.

Rob chose to re-enter the federal employment 10 years later in order to improve his financial situation from his current position as a security guard at a nearby mall. He has fallen behind on rent and car payments, and his 4-year-old daughter and him rely on food assistance.

With a potential start date of November 5, he took a post last week as a police officer at a Veterans Health Administration hospital. If the government shuts down, he worries that the paperwork and medical reviews he needs to start work would be delayed.

“This was a light at the end of the tunnel for us,” said Rob, who no longer resides in Boston and did not want his last name used for fear of losing his job offer. “All I want to do is work. I just want to perform my duty and serve my nation.
Even more severe blows to federal contractors

Meanwhile, many federal contractors are getting ready to forego all compensation until Congress finds a solution to the standoff.

Pittsburgh native Theresa Springer holds the position of senior consultant at a boutique management consulting firm serving multiple government departments. Although the last shutdown lost her firm hundreds of thousands of dollars, she was still able to make ends meet because she and her employees were granted paid time off. The same offer stands for this year, with the employer providing her around two weeks’ notice before she stops getting paid.

Springer claims she has enough cash to get by if there is a shutdown, but she will have to be careful with her money and could have to put off some purchases. Regardless, she is frustrated with legislators and believes they should stop getting paid because they can’t seem to get anything done.

To paraphrase, “my emergency fund is for emergencies, not for the federal government not being able to get their act together,” she remarked.

Small businesses like Sue Doyle’s Home Sweet Home Cleaning Service in Columbia, Maryland are also feeling the pinch since they rely heavily on federal workers for revenue. Ten percent to twenty percent of her clientele are government employees, and many of them cancel appointments during shutdowns.

That’s bad for her bottom line, and it also reduces the pay of her seven workers. Instead than laying anyone off, Doyle has opted to cut everyone’s hours. She noted that while most of them do comprehend, they are frustrated because they, too, have expenses to pay.

According to Doyle, “a shutdown has a trickle-down consequence,” therefore she has begun discussions with banks about a business loan to help her make ends meet during the standoff. I’d like to keep my workers from taking more than one day off every week, if possible.

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