Fitch says limited impact from brief US shutdown
Fitch Ratings said on Friday that a brief government shutdown in the United States is unlikely to harm most public finance entities. However, the agency noted in a statement that a long deadlock could hurt those depending on federal support for healthcare, education, housing, and transit programs.
Programs like Medicaid and Medicare, not dependent on annual budgets, are shielded from disruptions. Similarly, transportation projects funded by the Highway Trust Fund are unaffected due to dedicated fuel taxes and structural protections.
Federal employees in defense and postal services would continue to work without interruption, while other sectors could face temporary layoffs or "required to work without pay." "The shutdown could also cause non-material operational disruptions at airports with non-essential FAA and TSA worker furloughed, although the risk to finances is very low. Airport capital projects could be delayed if federal grant funding is held up," the agency added.