The 2025 government shutdown has left thousands of public employees uncertain about their next paycheck and whether key projects will resume on schedule. This shutdown, now the longest in U.S. history, affects more than Washington. Many employees at the Idaho National Laboratory (INL), Forest Service, Bureau of Land Management (BLM), and USDA are directly impacted. Even researchers and staff at public universities such as Boise State, Utah State, Idaho State, and the University of Utah are feeling the effects.
If you work in research, innovation, or public service, financial uncertainty can feel especially stressful. Your work drives meaningful progress across the country, yet you may face disruption through no fault of your own. You are not alone. There are practical steps you can take to regain control and protect your financial well-being.
1. Take Inventory of Your Cash Flow and Reserves
Check your money first. Know what you have coming in and going out.
Before worrying about next month, review your immediate cashflow:
- Emergency Fund: Ideally, you already had three to six months of expenses saved before the shutdown. If your job stability is affected, determine how long your current cash reserves can cover your household expenses.
- Dual-Income Households: Coordinate with a spouse or partner to stretch available income and adjust savings plans.
- Cash Flow Triage: If needed, contact lenders about forbearance options for mortgages, student loans, or car payments. Many programs support federal employees. Prioritize essentials such as housing, food, and insurance, and pause any large purchases or new financial commitments.
- Investment Accounts: Avoid panic-driven changes. Ensure your portfolio aligns with your long-term goals. Are you globally diversified, or concentrated only in U.S. stocks or the S&P 500? Is your risk level appropriate for your retirement timeline? This isn’t something you can afford to get wrong. If you’ve been doing it on your own, consider getting a unbiased second opinion from a professional.
2. Reassess Tax and Retirement Planning
Use potential income shifts to your advantage.
If your pay or bonuses are delayed into 2026, your taxable income for 2025 could be much lower than expected. This may create opportunities where you can:
- Drop into a lower tax bracket
- Take advantage of Roth conversions
- Harvest capital gains at a reduced tax rate
Missed pay periods may also mean missed contributions to retirement plans such as 401(k), TSP, or 403(b). Once pay resumes, consider temporarily increasing contributions to catch up if your plan allows. If you contribute to a Health Savings Account (HSA) or Dependent Care FSA, review to ensure you reach your intended contribution limits once payroll resumes.
3. Review Your Retirement Readiness
Think of this as a stress test for your financial independence.
Ask yourself:
- How long could you go without income?
- How will you use your investment portfolio to replace a W2 paycheck?
- Are you on track to make work optional when you want?
- Do you have a financial plan for when work becomes optional?
A couple of months of missed retirement contributions are not the end of the world. You can easily increase savings when circumstances normalize. For employees participating in 401(k) plans or hybrid pension structures, check whether employer matches or pension accruals are paused during the shutdown.
4. Take Action and Seek Support When Needed
Clarity and communication are your best tools during uncertainty.
- Take Inventory: List all sources of income, expenses, debts, and assets. A clear snapshot helps guide decisions.
- Communicate: Reach out to lenders, HR departments, or your university’s financial wellness office. Many are offering support to employees affected by the shutdown.
- Professional Guidance: If you want a personalized strategy for tax planning, investments, and retirement readiness, consider consulting a financial advisor experienced with research, federal, and university employees.
You cannot control the shutdown, but you can control your financial response. The steps you take now can help you weather the storm and strengthen your financial foundation.
If you have questions or want to review your plan, we are here to help. We offer a free, no obligation consultation to do a deep dive on your financial situation and offer an unbiased second opinion. We'll cover whatever is most top of mind - from retirement, investments, and tax strategy. Click here to schedule.
If you found this article helpful, please share it with friends and colleagues at INL, Forest Service, BLM, USDA, or your university.
