The government shutdown is here. How will North Carolinians be impacted? - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
October 1, 2025 Newswires
Share
Share
Tweet
Email

The government shutdown is here. How will North Carolinians be impacted?

Danielle Battaglia, The News & Observer (Raleigh)News & Observer

The government shut down overnight Tuesday as Congress failed to pass a funding bill ahead of its midnight deadline.

Republicans and Democrats are locked in a stalemate over funding the federal government, with no sign of a resolution in sight. Democrats are demanding three provisions be included in a short-term extension of funding to get their support, including keeping alive a financial assistance program from the Affordable Care Act that lowers health insurance premiums. And Republican House Speaker Mike Johnson has chosen not to bring his chamber back into session.

The impasse means 140,000 North Carolinians will not receive their paychecks during the shutdown, and some federally funded programs and services used throughout the state will be shuttered. On Tuesday afternoon, Democratic Gov. Josh Stein announced an additional 200 state employees paid through federal funds have also been furloughed, with additional employees potentially affected if the shutdown drags on.

“I know this news has a profound impact on you and your families,” Stein wrote in a letter to employees, obtained by McClatchy. “The decision to implement furloughs is not one that has been taken lightly, and I regret the hardship it will cause. I also regret the impact on state employees who are not furloughed; some of you will be taking on more work at a time you are already stretched too thin.”

“I am immensely frustrated with this federal dysfunction, and I urge the federal government to find a resolution for this shutdown and restore the necessary funding,” Stein said in his letter.

North Carolina officials haven’t put out much in the way of public statements to address what’s coming. A spokeswoman with the Office of State Budget and Management told McClatchy she is working with the governor’s office on gathering information responsive to two inquires the newspaper made about the ramifications. Stein’s office responded with a statement about ensuring Western North Carolina can continue to rebuild after Helene.

But with the two parties at an impasse, what is clear is that North Carolina will see quick consequence due to Congress’ failure to act.

We compiled a list of what can be expected if a shutdown occurs beginning Wednesday. As in all shutdowns, things develop rapidly. Please email [email protected] if there is something you want us to look into.

During government shutdowns, essential federal employees — typically public safety officers and those who protect federal buildings — must still show up to work, but don’t receive paychecks. Nonessential employees are normally furloughed.

But federal Office of Management and Budget Director Russ Vought warned of permanent, mass layoffs if a shutdown occurs. President Donald Trump reiterated that warning Tuesday morning.

As of Sept. 12, 51,900 federal workers live and work in North Carolina, excluding uniformed military personnel and contract employees. There are more than 91,000 active-duty personnel in North Carolina.

It’s not yet clear who is considered essential, and that varies from shutdown-to-shutdown.

Since 1976, there have been four government shutdowns that lasted more than one day. The last one occurred during Trump’s first term. That shutdown was 34 days and began in Dec. 2018 and ended in Jan. 2019. It was the longest in history, cost $5 billion and left 380,000 employees across the country furloughed.

In North Carolina, 72,000 employees were furloughed, or 11% of federal employees living in the state.

The Office of State Human Resources announced Tuesday afternoon 200 state employees paid through federal funding would be furloughed beginning Wednesday.

“This situation is frustrating, and we are aware of the disruption it causes,” said State Human Resources Director Staci Meyer, in a news release. “We remain committed to transparency during this difficult time and we are offering resources to furloughed employees through a dedicated hub on our website.”

Because State Health Plan benefits are paid a month in advance, employees will continue to have health coverage through October. State employees can access additional resources at a website set up for furloughed employees.

Social Security and Medicare funding is not part of these 12 appropriation bills, which means the benefits will continue unaffected. However, certain aspects of the programs, like the issuance of Medicare cards, could be affected.

Multiple Trump administration officials have said the Special Supplemental Nutrition Program for Women, Infants, and Children, known as WIC, will shut down immediately.

“If they shut the government down, not only are troops unpaid, federal workers and all the services that everyone relies on, but the WIC program, the nutrition program — Women, Infant and Children — they will not get that program,” Johnson said to reporters while leaving the White House Monday. “It will not be funded.”

This program provides nutrition assistance through food, breastfeeding promotion and support, nutrition education and community referrals, to low-income pregnant, postpartum and breastfeeding women, infants and children up to age 5.

In 2024, 230,000 people were using WIC in North Carolina.

The Supplemental Nutrition Assistance Program, known as food stamps, allows people with low incomes to boost their food budget. In North Carolina, 1.42 million people were on SNAP last year. The program saw a substantial increase in enrollment as people dealt with the aftermath of Helene in Western North Carolina.

During the 2019 shutdown, SNAP funding continued at the onset, but as the month dragged on, recipients were warned that money was running out rapidly.

That appears to be the case this time as well.

The U.S. Postal Service is known for its unofficial motto: “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.”

You can add a government shutdown to that phrase. It should remain unaffected.

More than 600,000 veterans live in North Carolina.

The U.S. Department of Veterans Affairs published a guide on what veterans can expect during a government shutdown.

The good news is that veterans will still have access to all services provided at medical centers, outpatient clinics and Vet Centers.

Benefits including compensation, pension, education and housing benefits will still be paid out.

Burials will continue at national cemeteries, and headstones, markers and burial benefit applications will continue to be processed. However, ground maintenance and the placement of permanent headstones will not. Pre-need burial applications won’t be processed and the National Cemetery Applicant Assistance Hotline will close.

The Board of Veterans’ Appeals continues to operate, as will veteran call centers, including the primary line and the crisis line.

Suicide prevention programs, homeless services and caregiver supports also continue to operate.

Veterans Affairs won’t provide transition program assistance or career counseling during a shutdown. VA benefits regional offices will shut down and public affairs and outreach will stop.

Veterans will also not receive new Presidential Memorial Certificates that honor veterans for their service to the country.

The U.S. Department of Agriculture has one of the more thorough explanations of what to expect during a shutdown, warning that it would “adversely impact farmers and ranchers who rely on county-level USDA offices of the Farm Service Agency and the Natural Resources Conservation Service.”

As of the 2022 census, there were nearly 43,000 farms operating in North Carolina.

The USDA said in the event of a shutdown, the local Farm Service Agency and Natural Resources Conservation Service offices would close, and while famers and key stakeholders might not feel the impact of that immediately, it would be felt the longer a shutdown lasts.

The agency did assure that food safety inspections, wildfire suppression, nutrition assistance programs and monitoring for pests and disease would continue.

North Carolina is home to 10 major airports.

During government shutdowns both air traffic control and Transportation Security Administration employees continue to work, without pay.

During the last shutdown, TSA employees called out of work, causing delays at airports across the country.

There are 13 National Park Service areas in North Carolina.

In past shutdowns, it’s varied from park-to-park whether visitors may still come to the site, but bathrooms, trash collection, ranger services and visitors centers typically cease operations.

©2025 Raleigh News & Observer. Visit newsobserver.com. Distributed by Tribune Content Agency, LLC.

Older

Superintendent of Insurance approves premium rates

Newer

France’s Budget Deficit Could Trigger Huge ECB Money Printing for Bitcoin

Advisor News

  • OBBBA and New Year’s resolutions
  • Do strong financial habits lead to better health?
  • Winona County approves 11% tax levy increase
  • Top firms’ 2026 market forecasts every financial advisor should know
  • Retirement optimism climbs, but emotion-driven investing threatens growth
More Advisor News

Annuity News

  • Judge denies new trial for Jeffrey Cutter on Advisors Act violation
  • Great-West Life & Annuity Insurance Company Trademark Application for “EMPOWER BENEFIT CONSULTING SERVICES” Filed: Great-West Life & Annuity Insurance Company
  • 2025 Top 5 Annuity Stories: Lawsuits, layoffs and Brighthouse sale rumors
  • An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Product understanding will drive the future of insurance
More Annuity News

Health/Employee Benefits News

  • U.S. Federal Minimum Wage Remains Flat for 16th Straight Year as Billionaires’ Wealth Skyrockets
  • Reports from Case Western Reserve University Add New Data to Findings in Managed Care (Improving Medication Adherence and Medication Optimization With a Medicaid-Funded Statewide Diabetes Quality Improvement Project): Managed Care
  • Data on COVID-19 Published by Researchers at Peking University (Socioeconomic Disparities in Childhood Vaccination Coverage in the United States: Evidence from a Post-COVID-19 Birth Cohort): Coronavirus – COVID-19
  • 2025 Top 5 Health Stories: From UnitedHealth tragedy to ‘excess mortality’
  • AMO CALLS OUT REPUBLICANS' HEALTH CARE COST CRISIS
More Health/Employee Benefits News

Life Insurance News

  • One Bellevue Place changes hands for $90.3M
  • To attract Gen Z, insurance must rewrite its story
  • Baby On Board
  • 2025 Top 5 Life Insurance Stories: IUL takes center stage as lawsuits pile up
  • Private placement securities continue to be attractive to insurers
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

8.5% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet