US Government shutdown impacts American consumers significantly –Experts

*Consumer advocates and experts warn the ongoing Federal Government’s shutdown in the United States is threatening housing, food safety, and consumer protections, impacting everyday Americans significantly

Isola Moses | ConsumerConnect

The ongoing Federal Government’s shutdown in the United States (US) now threatens housing, food safety, and consumer protections, impacting everyday American consumers significantly.

ConsumerConnect reports the Federal Government has shut down after budget impasse with the US Congress, comprising the Senate and the House of Representatives.

Following the decision to suspend government operations, consumer advocates and experts warned against sweeping risks to housing, food, finance, and data privacy of consumers in the American country.

PoS Terminals: CBN extends geo-tagging enforcement deadline, imposes N5m penalty

Now, the US Government’s shutdown is stretching into its second week, and consumer advocates said the consequences were being felt far beyond Washington.

Speaking on the development, the Consumer Federation of America (CFA), in a recent statement, outlined how the shutdown actually threatens to disrupt key protections in housing, food safety, financial regulation, and consumer privacy.

CFA leaders also warned that with agencies hamstrung and workers furloughed, ordinary Americans are being left vulnerable at a time of widespread affordability struggles.

Housing disruption looms

Sharon Cornelissen, CFA’s director of housing, said the shutdown would “further paralyse HUD” and halt the limited fair housing work still underway.

Cornelissen warned that thousands of home closings could stall, particularly in flood-prone regions, because the National Flood Insurance Program can no longer issue or renew policies.

She also stated: “Broad, affordable, and fair access to housing is impossible without a well-functioning government.

“But this administration has done nothing but undermine essential housing programs and protections.”

Consumer protection issues sidelined

CFA experts highlighted the toll on relevant agencies that protect families, and other households from financial harm in the economy.

Erin Witte, Director of Consumer Protection in the US, described the President Donald Trump-led administration’s shutdown as “a continuation of the relentless assault on consumer protection”, citing a freeze on oversight of predatory lending and abusive fees.

Adam Rust, Director of Financial Services, said sidelining the Consumer Financial Protection Bureau (CFPB) gives rulebreakers “free rein” to exploit consumers at this critical time.

“When the government closes its doors, fraudsters stay open for business,” he said.

Investor and privacy safeguards weakened

Investor protections may also be at risk, agency report said.

Speaking on the development, Corey Frayer, Director of Investor Protection, also warned that SEC enforcement has been eroded, leaving markets more exposed.

Meanwhile, CFA’s AI and data privacy lead, Ben Winters, said a weakened Federal Trade Commission and CFPB “leaves people with even less power and less hope of a fair marketplace,” particularly against online scams, data brokers, and tech platforms that resist moderation.

Food safety inspections cut back

Food safety is another area of concern for consumer advocates in the US.

Thomas Gremillion, CFA’s Food Policy Director, reportedly noted that while USDA inspectors would keep working, many of the personnel might go unpaid.

At the Food and Drug Administration (FDA), routine inspections are suspended, leaving only a skeleton crew to investigate urgent cases, according to report.

With the CDC also halting surveillance analysis of food-borne illnesses, officials could be slower to detect and respond to outbreaks.

Gremillion said: “This means authorities may be slower to solve a nationwide outbreak like the Boar’s Head Listeria case last year, which killed 10 people.”

Data gaps and financial stress

The shutdown has also halted operations at the US Bureau of Labour Statistics, cutting off the publication of key inflation data.

Ethan Weiland, CFA research associate, warned that “now is not the time to be flying blind” when millions are already struggling with rising costs.

CFA’s Michael DeLong emphasised the risk to the 4.7 million Americans covered by Federal flood insurance, while Amy Miller of America Saves and Krystel Spell of Veteran Saves cautioned that delays in benefits, claims, and services could quickly disrupt household budgets and create financial stress.

Miller explained: “While many essential services continue during a shutdown, everyday Americans can still feel the ripple effects in very real ways.”

For families already stretched thin, even a short interruption could make it difficult to cover essentials like rent, utilities, or groceries, report noted.

How Americans can protect themselves amid government shutdown

1. Double-check insurance coverage: If you’re buying or selling a home, confirm whether flood insurance is affected before closing.
2. Stay alert for scams: Fraudsters often prey on shutdown confusion. Be wary of unsolicited offers to “speed up” benefits or insurance renewals.
3. Budget conservatively: Expect possible delays in claims, benefits, or paycheck processing. Keep extra cash on hand if possible.
4. Track food recalls: With inspections reduced, monitor FDA and USDA recall notices closely for safety alerts.
5. Monitor credit and bank accounts: With weakened oversight, watch for unusual charges or predatory lending offers.

What to do if you’re directly affected?

• If your housing transaction is delayed: Contact your lender immediately and ask about temporary solutions or extensions.
• If you rely on flood insurance: Check with your insurer about whether your policy is active or in limbo during the shutdown.
• If you’re a veteran: Expect core benefits to continue, but anticipate delays in processing new disability claims or GI Bill stipends.
•   If you’re concerned about food safety: Avoid high-risk foods (deli meats, unpasteurised cheeses) and              follow FDA/CDC alerts closely.
• If you’re on a tight budget: Prioritise essentials, such as rent, groceries, and utilities until benefit timelines are clearer in the United States.

  Kindly Share This Story