How the government shutdown could impact the Philadelphia region

PHILADELPHIA - As the U.S. government enters a shutdown, Philadelphia area residents and businesses could feel effects locally – from federal workers missing paychecks to delays in services and enforcement.

What is a government shutdown?

What we know:

A government shutdown means non-essential federal functions are paused and many federal workers are furloughed. Essential staff, like air traffic controllers or TSA agents, may still work but without pay initially. Reuters reports over 11,000 FAA employees would be furloughed in a shutdown, while controllers would be required to keep working.

In Philadelphia, federal agencies and regional offices could scale back operations or delay services. For example, the U.S. Department of Health & Human Services maintains a regional office in Philadelphia that handles public health programs. Permitting, federal inspections, grants and regulatory oversight could be delayed.

Local contractors and businesses that depend on federal contracts or payments may see funding freeze or invoices delayed. According to analysis from the U.S. Chamber, businesses in areas with a large federal presence are especially vulnerable to cash flow disruptions when government payments stop. 

The shutdown also places strain on local government and nonprofits. With federal funds paused, local agencies may need to cover services or face shortfalls. The National League of Cities warns that, over time, cities often end up absorbing costs for projects or programs dependent on federal funding.

What to expect in Philadelphia

Federal workers may miss paychecks 

• Many in the region will be affected, including those in agencies, regulatory bodies or administrative roles.
• Philadelphia is home to thousands of federal employees — IRS, Social Security, Veterans Affairs, Environmental Protection Agency, Department of Health & Human Services and more.

Airports and travel 

• Philadelphia International Airport: TSA officers, customs officials and FAA controllers work without pay — leading to possible longer security lines, flight delays or staffing shortages.
• This is especially relevant since PHL is a hub with significant domestic and international travel.

Courts and legal filings 

• Federal courts near Philadelphia may reduce operations or delay hearings if staff can’t operate without funding.

Permit & regulatory delays 

• Projects requiring federal approvals (building, environmental, infrastructure) might pause.

Grant, service and social programs 

• Programs tied to federal funding from agencies may see suspension or delays.
• SNAP, WIC, and other federally funded assistance programs have limited reserves. Families in the Philadelphia area could be affected if a prolonged shutdown delays benefits.
• Housing programs (HUD) could also stall, delaying inspections or payments to landlords who rent to low-income tenants.

RELATED: SNAP benefits increasing Oct. 1: here are the new amounts in Pennsylvania

Contractor payments suspended 

• Local companies with federal contracts may be unable to get funds until the shutdown ends.

Regional economy & small businesses

• Federal contracts play a big role in the Philadelphia area (defense, health research, construction, IT services). Contractors may not get paid on time, putting pressure on small and minority-owned businesses that work with the government.
• Restaurants, coffee shops and services around federal offices downtown could also see reduced business if employees are furloughed.

Local institutions tied to federal money

• Museums and parks like Independence Hall and the Liberty Bell (Independence National Historical Park) could close if National Park Service staff are furloughed.
• Universities and hospitals in Philly that rely on federal grants (NIH, NSF) could see research funding slowed or paused.

Local reaction to shutdown

U.S. Senator John Fetterman posted on X saying, "It’s a sad day for our nation. Our government shuts down at midnight. I voted AYE to extend ACA tax credits because I support them—but I won’t vote for the chaos of shuttering our government. My vote was our country over my party. Together, we must find a better way forward."

Senator Dave McCormick also weighed in on X, saying, "The Democrats voted to shut the government down and put hardworking Americans last."