Government Shutdown 2025: How Bay Area would be affected

SAN FRANCISCO - For hundreds of thousands of federal workers in California, the prospect of a prolonged government shutdown is causing stress and frustration, as Congress continues to face deep divisions that have both Republicans and Democrats refusing to budge on issues that are polarizing the nation. 

The brunt of the budget stalemate is borne by federal employees who, in the case of a government shutdown, must either face furloughs or work in essential jobs without a paycheck. 

Republicans have proposed a short-term funding bill to keep the government running through Nov. 21, but Democrats are pushing for changes tied to health care. They want to reverse Medicaid cuts from President Donald Trump’s legislation and extend tax credits that lower insurance premiums for millions who buy coverage through Affordable Care Act marketplaces. Republicans have dismissed the demands as a non-starter.

Neither side appears willing to budge, and the House isn’t expected to hold any votes this week.

Here’s how a government shutdown would unfold.

How would Bay Area be affected? 

This has many thinking about the local impacts.

San Francisco's Fleet Week, which is on Sunday, would be in jeopardy if there's a shutdown and thousands of federal employees in the Bay Area would not get paid or be furloughed.

A Fleet Week spokesperson says if there's a partial government shut down, Fleet Week itself would still proceed as a local community event. But no US military ships, aircraft or sailors would participate. Visiting ships from other countries might participate though. 

Also, about 8,000 federal employees in the East Bay would go without pay; 5,300 in Silicon Valley would be furloughed and 10,000 low-income residents would temporarily lose food assistance, according to the Bay Area News Group.

"That impacts the whole community," U.S. Rep. Mark DeSaulnier (D-Dublin) told KTVU on Tuesday. "So those people don't have work, which is absolutely horrible for their kids. How do they support the local community? How do they go out to eat? All of those things contract the economy. It's incredibly destructive and what's the point? This is the biggest attack on healthcare in the history of this country." 

In California, Democrats estimate 190,000 federal workers would be furloughed or forced to work without pay, plus 213,000 military personnel in the state, Bay Area News Group reported.
 

What happens during a government shutdown?

When funding lapses, federal law requires agencies to halt operations and furlough "non-excepted" employees. Excepted employees typically include workers who protect life and property. They remain on the job but go unpaid until the shutdown ends.

During the 35-day partial shutdown in President Donald Trump’s first term, about 340,000 of the 800,000 federal employees at affected agencies were furloughed. The rest were classified as "excepted" and required to work without pay.

What government functions continue during a shutdown?

Quite a bit, actually.

FBI agents, CIA officers, air traffic controllers and airport security personnel continue working during a shutdown. Members of the Armed Forces do as well.

Programs funded through mandatory spending generally continue during a shutdown. Social Security checks still go out, and seniors with Medicare can visit doctors, submit claims and receive reimbursements.

Veteran health care continues during a shutdown. Veterans Affairs medical centers and outpatient clinics remain open, and benefits are still processed and delivered. Burials also proceed at national cemeteries.

Will furloughed federal employees receive back pay?

Yes. In 2019, Congress passed a law requiring that furloughed federal employees receive retroactive pay once operations resume.

While they’ll eventually be paid, furloughed workers and those still on the job may miss one or more paychecks, depending on how long the shutdown lasts. That could create financial strain for many.

Service members will also receive back pay for any missed paychecks once federal funding is restored.

Will mail still be delivered during a shutdown?

Yes. The U.S. Postal Service isn’t affected by a government shutdown. It operates independently and is funded through the sale of products and services, not tax dollars.

What closes during a shutdown?

All administrations have some discretion in deciding which services to suspend and which to maintain during a shutdown.

The Trump administration worked to minimize the disruption of what became the nation’s longest partial shutdown in 2018 and 2019. However, in reopening certain offices, experts say it showed a willingness to cut corners, scrap prior plans and enter legally questionable territory to ease the strain.

Each federal agency drafts its own shutdown plan, outlining which employees would stay on the job and which would be furloughed.

In a provocative move, the White House Office of Management and Budget has threatened mass firings of federal employees if a shutdown occurs. An OMB memo said programs left unfunded by Trump’s spending package would be the hardest hit.

Agencies should consider issuing reduction-in-force notices for programs whose funding expires Oct. 1, lack alternative sources and are "not consistent with the president’s priorities," the memo said.

That would be a far more aggressive step than in past shutdowns, when furloughed federal employees returned to work once Congress approved funding.

A reduction in force would not only lay off workers but eliminate their positions triggering another major upheaval in a federal workforce already hit by deep cuts this year from the Department of Government Efficiency and other parts of the Trump administration.

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