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When the Safety Net Falters: Financial Planning If You’re Impacted by the Government Shutdown and SNAP Benefit Disruptions
- David Peters
- 1 day ago
- 5 min read
When the federal government shuts down, it’s not just a headline, it can hit ordinary people in very real ways. Right now, with the U.S. government shutdown under way, families and entrepreneurs who depend on food assistance through the SNAP program are facing serious uncertainty.
At Peters Financial, we believe in helping everyday families, young entrepreneurs, and small-business owners make informed choices today, budget for tomorrow, and save for the future. If you’re relying on SNAP benefits, or know someone who is, this guide to financial planning during the government shutdown offers practical steps to protect your finances and build resilience for the future.
1. What’s happening with SNAP?
The SNAP program supports millions of Americans who need help putting groceries on the table. But because it is federally funded, a prolonged shutdown threatens its uninterrupted functioning. For example:
According to the Food Research & Action Center (FRAC), if a shutdown persists beyond current appropriations, new benefits might be delayed or paused.
Some states are warning that, unless the shutdown ends, they may not be able to issue November benefits.
One recent article noted that about 42 million Americans could lose access to food aid if the shutdown continues.
In short: if you receive SNAP benefits or rely on them as part of your household budget, this is a real risk, not just a distant possibility
2. Why this matters for your household or business
When SNAP benefits are interrupted:
You may have less money to spend on groceries, which forces trade-offs among food, utilities, rent/mortgage, or debt payments.
If you’re a young family, that stress can ripple: fewer meals, more worries, less ability to save or invest.
For small business owners or entrepreneurs, especially those who rely on lean cash flow, this kind of disruption can amplify financial stress.
It highlights the fragility of relying on a benefit that is ultimately dependent on federal appropriations.
From a planning perspective, this is a call to action: to review your budget, build contingency savings, and adjust your financial plan to withstand shocks.
3. Financial planning steps you can take right now
Here are concrete actions that Peters Financial recommends:
a) Review and revise your budget
Identify how much of your monthly household budget relies on SNAP + other government-benefit support.
Prioritize essential expenses: food, housing, utilities. Map out your minimum “survival” budget if benefits are delayed.
Trim discretionary spending temporarily: subscriptions, dining out, non-essential purchases.
b) Build or boost your emergency fund
If you don’t already have 3-6 months of living expenses set aside, this is a good time to ramp up.
Even an extra week or month of cushion can reduce stress if benefits are delayed.
For entrepreneurs or business owners: consider the business cash flow buffer too. How many weeks of business expenses can you cover if revenue dips or personal spending needs increase?
c) Look for alternative food sources and support
With SNAP benefits at risk, check local food banks, community programs, or church/charity food support lines.
If you’re a small business owner, consider whether your business can temporarily assist (e.g., discounted meals, community partnerships) and whether these efforts might qualify as community outreach or marketing.
d) Revisit debt and savings priorities
If your budget tightens, consider temporarily shifting from savings to liquidity (i.e., make sure you have cash) rather than longer-term investments for a bit.
For high-interest debt: now may be a time to re-prioritize paying it down if possible.
Evaluate your retirement savings strategy—if you need to reduce contributions in the short term, that’s okay, but don’t abandon your long-term plan.
e) Communicate with your advisors and lenders
If you have a mortgage, business loan, or other large‐payment obligation, contact lenders proactively. Many institutions offer payment deferrals or hardship arrangements during a crisis.
If you work in or contract with the federal government, or rely on federal funding, check on your status and your state’s response.
At Peters Financial, we’re here to help you model scenarios—what happens if benefits stop in November, or are delayed 60+ days.
4. Long-term resilience: building a stronger foundation
While the immediate risk is serious, it also underscores the importance of building financial resilience for the long haul, especially for young families, entrepreneurs, and small business owners.
Diversify income sources
Maintain a flexible business model
Strengthen your personal and business insurance
Regular financial check-ups
Prepare for policy risk
At Peters Financial we recommend quarterly reviews of your budget, savings, debt, and business cash flow, so adjustments can be made before a crisis forces them.
5. What if benefits stop or are delayed? A contingency plan
Here’s a simple “if” scenario to consider: if your household stops receiving SNAP benefits in November, what do you do?
Use cash or credit carefully: avoid high‐interest debt.
Prioritize essential spending.
Tap emergency funds or short-term borrowing only as needed.
Lean on local non-profits or food assistance programs.
Adjust your business plan if you’re an entrepreneur.
After stability returns, rebuild savings and reassess your plan.
6. Why you should act now
The longer you wait, the less flexibility you have. Once benefits are delayed or stop, you may be forced into reactive decisions: delaying mortgage payments, skipping retirement contributions, cutting essentials. Acting ahead gives you choice, not simply reaction.
At Peters Financial, we’ve helped many young families, small business owners, and entrepreneurs build resilient plans. We’d be happy to walk you through scenario modeling, what happens if SNAP is delayed 30 days, 60 days, or longer. Let’s plan for today and tomorrow.
7. Key takeaways
The SNAP program is at risk of interruption in November due to the federal government shutdown.
If you depend on SNAP, or your household budget assumes that benefit, you need to revise your budget, build emergency savings, and plan for contingencies.
For entrepreneurs and small business owners, this is a reminder of financial fragility.
Acting now gives you more options and less risk of being forced into tough decisions later.
Schedule a Free Consultation
If you’ve been impacted by the government shutdown or the pause in SNAP benefits, our team can help you create a plan that brings stability back to your finances.
About the Author:
David Peters, CPA, CFP, ChFC, CLU, CPCU, CGMA, is the Founder and Owner of Peters Professional Education (petersprofessionaleducation.com) and Peters Tax Preparation & Consulting, PC. David Peters is also registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States, and regularly contributes regularly to various professional publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.
Required Disclosure:
The content presented above is for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as financial, investment, or estate planning advice. This does not constitute an offer to sell or a solicitation to buy any security, investment or planning product. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Please consult with a financial advisor to assess your individual situation.
Financial and investment advisory services offered through Peters Financial LLC. Brokerage and custodial services offered through Charles Schwab Co. Inc., member FINRA and SIPC. Peters Financial LLC and Charles Schwab Co. Inc. are not affiliated. David Peters also offers tax services through Peters Tax Preparation & Consulting, PC. Peters Tax Preparation & Consulting, PC is not affiliated with Peters Financial LLC and clients or prospective clients are never obligated to use Peters Tax Preparation & Consulting, PC. as part of any financial planning or investment management services offered by Peters Financial LLC.
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