Economics

Fewer than three months after the longest federal government shutdown in U.S. history, lawmakers are gridlocked again ahead of a Friday funding deadline to keep the government fully operational. Six of the 12 annual spending packages that fund federal agencies for the fiscal year have already been passed by Congress and signed into law by President Donald Trump. However, the remaining six bills are being fiercely debated in the U.S. Senate and are at risk of missing the Jan. 30 deadline, which would send the U.S. government into another partial shutdown. The stalled bills include appropriations for the departments of the Treasury, Health & Human Services, Education, Labor, State, War (formerly known as Defense), Homeland Security, Transportation, Housing & Urban Development and other agencies. The debate hinges on funding for the Department of Homeland Security, which includes U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, known as ICE. Following the ICE killing of Alex Pretti, 37, in Minnesota on Saturday, the appropriations bill stalled, with many lawmakers refusing to vote for any ICE funding. “I hate shutdowns,” Sen. Angus King, I-Maine, said during a CBS Face the Nation interview on Sunday. “But I can’t vote for a bill that includes ICE funding under these circumstances.” Because funding for the Department of Homeland Security is currently packaged together with several other departments, the debate over ICE funding could plunge the U.S. into another partial shutdown. “Any shutdown is a bad shutdown,” Andrew Lautz, a director of federal tax policy at the Bipartisan Policy Center, previously told Money. “Even if it’s a one-day shutdown.” While some agencies are already funded, many others — like the departments of the Treasury and Education — administer crucial programs that affect the finances of everyday Americans. Here are several ways a shutdown could affect your money. 1. Federal workers are furloughed and paid late Perhaps the most directly impacted group of people during a government shutdown is federal workers and contractors who have nothing to do with the political negotiations over spending. (Lawmakers still get paid during government shutdowns.) According to the Department of Labor, the federal government employs nearly 3 million non-military workers. On top of that are “hundreds of thousands of federal contractors whose businesses in large part depend on the federal government,” Lautz says. Many of these workers are once again at risk of being either furloughed or asked to show up to work without on-time pay. A 2019 law guarantees back pay for these workers when the shutdown ends, but they are forced to make do in the meantime with no clear timeline for their next payday. “One missed paycheck can be a missed payment on your car, a missed payment on your mortgage,” Lautz says. “It can mean going into credit card debt.” Given the size of the federal workforce, Lautz also notes that the missed paychecks could also have a ripple effect on the local economies with a high concentration of federal workers, given that they will likely have to curtail spending throughout the shutdown. A recent report from the nonpartisan Congressional Budget Office estimated that a partial government shutdown could result in up to $400 million of lost compensation per day for federal workers. 2. The IRS would suffer as tax season ramps up Tax season officially launched Monday, and the Trump administration has been touting potentially “gigantic” refunds this year. According to the Tax Foundation, refunds could be between $300 and $1,000 larger than normal due to a slew of tax code changes from President Donald Trump’s One Big Beautiful Bill Act. Because the Treasury Department is awaiting appropriations, the IRS is at risk of partially closing at a crucial time. A shutdown right at the beginning of tax season could decimate the agency’s ability to process tax returns and issue refunds in a timely manner. The IRS hasn’t released new details on how many workers it would furlough during a shutdown, but the agency had to send home about half of its workforce during the last one. 3. Travelers could see flight delays For travelers, the good news is that air traffic control and airport security continue during the shutdown, so wide-scale cancellations and delays should largely be avoided. “But that’s not to say there aren’t potential interruptions,” Lautz says. The Department of Transportation, which oversees the Transportation Security Administration, or TSA, is among the departments requiring appropriations. TSA agents and other airport workers are generally deemed essential and asked to show up — but without pay. Many may decide not to. During the recent shutdown, several airports reported major back-ups as federal workers called off. National parks and museums would not be affected by a potential shutdown this time because the Department of the Interior has been funded. 4. Government benefits might be disrupted (but not Social Security payments) Many federal benefits programs are affected during a government shutdown, but Lautz wants to make one thing clear: “Social Security benefits will continue to flow.” However, the actual administration of the program, including customer service and verification of eligibility, could be disrupted. The Social Security Administration’s latest shutdown plan says about 45,000 employees will stay on while 6,200 are furloughed. Social Security benefits are one example of “mandatory” government spending, meaning the government is obligated to pay out these benefits even during a shutdown. Medicare and Medicaid benefits are also mandatory. However, the agency’s shutdown plan says benefits verification and Medicare card replacement services may be put on hold. Temporary Assistance to Needy Families (aka welfare) and Section 8 housing assistance could also be affected since the administering departments require funding. SNAP benefits, which are mandatory spending via the Agriculture Department, are funded and are not likely to experience major delays. 5. The release of economic data may be held up Among the long list of agencies that are hobbled by a government shutdown are those that monitor and report on the economy, namely the Department of Labor’s Bureau of Labor Statistics. This

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A new round of tariffs is about to hit U.S. consumers and businesses. Starting on Oct. 1, the Trump administration is imposing steep new duties on pharmaceuticals and heavy (semi) trucks, escalating its protectionist trade push into industries that touch everything from health care to housing. On Monday, the White House also announced a two-week delay for tariffs on wood products, such as kitchen cabinets and upholstered furniture. Those duties will now take effect on Oct. 14 instead of Oct. 1. The measures include a 100% tariff on pharmaceutical products and a 25% tariff on heavy trucks. Furniture imports will also face a 25% tariff starting Oct. 14, with rates set to rise on Jan. 1 — up to 50% on kitchen cabinets and bathroom vanities and 30% on upholstered furniture. President Donald Trump also announced a 10% tariff on foreign softwood lumber and timber. These new tariffs add another layer of uncertainty for an economy already grappling with elevated inflation and signs of a weakening job market. The latest trade actions are being rolled out under a national security law known as Section 232 — the same provision Trump used to slap duties on steel, aluminum, cars and copper. His reliance on Section 232 coincides with legal challenges to tariffs issued under a different statute, the International Emergency Economic Powers Act, or IEEPA. The Supreme Court has agreed to quickly hear a case on whether Trump exceeded his authority under that law after an appeals court ruled against him. A loss in the Supreme Court would force the administration to withdraw the tariffs issued under IEEPA, including those tied to his “Liberation Day” measures targeting most countries’ exports on April 2. However, tariffs imposed under Section 232 would remain intact, as legal experts say the provision is far less vulnerable to legal challenges. Here’s a roundup of the latest tariff announcements: Pharmaceutical products Imported brand-name or patented pharmaceuticals are facing the sharpest blow, with a 100% duty that could raise drug prices substantially unless the drugmaker is building a manufacturing plant in the U.S. (Imports from the European Union face a smaller 15% levy under a trade deal reached earlier this year.) Trump argues the move will pressure drugmakers to expand U.S. production and lower prices — an outcome experts say is unlikely. Generic drugs aren’t expected to be affected by the new duties. “The reason for this is the large scale “FLOODING” of these products into the United States by other outside Countries,” President Trump wrote in a post on Truth Social Thursday. “It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process.” The U.S. depends heavily on foreign suppliers for its drug supply — 83% of the top 100 prescribed generic medications rely on imports, with common drugs like ibuprofen, aspirin and many antibiotics sourced largely from producers in China and India. The White House told CNN that “companies that are in the process of setting up manufacturing for a pharma product in the U.S. will not be subject to tariffs on that specific product until plant construction, etc., is completed.” Heavy-duty trucks On the industrial side, heavy trucks imported to the U.S. will be hit with a 25% tariff, raising costs for businesses that rely on commercial transport. “In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% Tariff on all ‘Heavy (Big!) Trucks’ made in other parts of the World,” Trump wrote on Truth Social Thursday. Earlier tariffs imposed by Trump — including 50% duties on steel, aluminum and copper — have significantly increased costs for U.S. truck makers. For example, these duties on metals used in production have added roughly 2% to 4% to per-unit costs, according to ACT Research. While many foreign-built trucks, including models from Germany’s Daimler and International Motors, are imported tariff-free under the U.S.-Mexico-Canada Agreement, the new levy could change the calculus depending on how exemptions are applied. Furniture and lumber The furniture sector is also in the crosshairs, with a 25% tariff being slapped on kitchen cabinets, bathroom vanities and upholstered furniture set to begin Oct. 14. Those duties will climb further on Jan. 1, rising to 50% on cabinets and vanities and 30% on upholstered furniture. Furniture prices have already been on the rise as Trump imposed tariffs on China and Vietnam, the top two exporters of furniture to the U.S., according to data from the United States International Trade Commission. Overall, furniture and operations were nearly 4% more expensive in August 2025 than a year ago, the Bureau of Labor Statistics reported in its latest Consumer Price Index. Lumber is also being targeted, with a new 10% tariff on foreign softwood lumber and timber set to take effect Oct. 14. The move follows a White House investigation launched in March into whether imported lumber poses a national security threat. Nearly half of all U.S. lumber imports come from Canada, though Trump has routinely argued that the U.S. should rely more on domestic supply. More from Money: Tariffs Are Driving Up the Cost of Your Morning Coffee. Can Congress Stop It? Is Shopping Secondhand the Perfect Tariff Loophole? Trump’s Tariffs Are Likely Headed to the Supreme Court. What Now?

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The third quarter saw market gains driven by Fed rate cuts and strong earnings, despite high valuations and concerns about speculative trading and job growth. Gold and international stocks could be potential hedges.

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What to know about RV insurance RV insurance is essential for both full-time RV living and occasional trips. Premiums vary based on your driving record, RV model and location, and may change annually. Much like car insurance, it pays to shop around and get new quotes once your policy is up for renewal. Our top picks include Progressive, Auto-Owners Insurance and National General. How we chose our top picks Money’s editorial team has evaluated RV insurance providers since 2016. Our research and analysis consider customer satisfaction, financial stability, coverage options, and availability, among other factors. We reviewed 15+ companies, conducted over 1,000 hours of research on coverage, available discounts and customer satisfaction from third parties and regulatory agencies. Read the full methodology to learn more. Our top picks for the best RV insurance companies Progressive – Best Overall Auto-Owners Insurance – Best for Customer Satisfaction Nationwide – Best for Discounts National General – Best for Specialized Coverages Good Sam – Best for Comparing Multiple Providers Roamly – Best for Renting Out Your RV Pros Disappearing deductibles Accident forgiveness for claims under $500 Add-ons available for pet injury and roof damage Often recommended by users in popular RV insurance forums Cons Rates differ based on whether you buy online or through an agent Discounts aren’t available in all states Middling customer satisfaction ratings from J.D. Power and Crash Network HIGHLIGHTS A.M. Best Rating A+ (Superior) Crash Network Insurer Report Card C J.D. Power U.S. Auto Claims Satisfaction Study Below average (672/1,000) NAIC Complaint Index Better than most (0.61) Discounts Multi-vehicle, original owner, pay-in-full, responsible driver, prompt payment, disappearing deductibles and more Bundles Auto, renters, homeowners, motorcycle or boat insurance bundle Why we chose it: Progressive is our best RV insurer overall for its competitive catalogue of RV insurance products as well as its available discounts, which offer plenty of opportunities to save money, including the rare combination of disappearing deductibles and accident forgiveness. While it costs extra, Progressive’s diminishing deductible benefit allows you to reduce your deductible by 25% every time you renew your policy without filing a claim or getting a traffic violation. After several claims-free periods, RV owners can get their deductibles down to zero. The benefit is automatically included at no cost when you purchase comprehensive and collision coverage for vehicles valued at $25,000 or more. Accident forgiveness for a claim of $500 or less is also included at no cost — this means your premium won’t increase if you file a claim of $500 or less for your first “at fault” accident. After five years without an accident or traffic violation, your first claim qualifies for accident forgiveness even if it exceeds $500. Pros Low NAIC complaint index High J.D. Power Customer Satisfaction rating in 10 states B grade on Crash Network’s Insurer Report Card Cons You can only get a quote by contacting a local agent Only available in 26 states HIGHLIGHTS A.M. Best rating A++ (Superior) Crash Network Insurer Report Card B J.D. Power U.S. Auto Claims Satisfaction Study Below average (692/1,000) NAIC Complaint Index Better than most (0.46) Discounts Payment history, paid-in-full, paperless billing, advance quote, safety features, driver safety program, mature drivers and favorable loss history Why we chose it: Auto-Owners Insurance has an impressive customer service record. The insurer has fewer complaints with the National Association of Insurance Commissioners (NAIC) than most of its competitors. Auto-Owners Insurance is also one of the few insurers with a B grade in Crash Network’s 2024 Insurer Report Card. For this survey, repair shops nationwide evaluate whether insurers prioritize quality repairs and good customer service for motorists. Most major insurers in the U.S. got a grade of C+ or less. Pros Vast array of discounts for easy bundling and savings Add-ons include coverage for glass windshield replacement Optional towing coverage includes lodging, transportation and meals Cons C grade on Crash Network’s Insurer Report Card No online quotes available Nationwide’s website may not list all the available discounts HIGHLIGHTS A.M. Best rating A (Excellent) Crash Network Insurer Report Card B J.D. Power U.S. Auto Claims Satisfaction Study Above average (728/1,000) NAIC Complaint Index Better than most (0.70) Discounts RV safety course, RV association, paid-in-full, good driver, continuous coverage and more Why we chose it: Most RV insurers offer discounts, but Nationwide’s list is notably extensive. The insurer offers over 10 different discounts including discounts for staying claims-free and installing safety devices, like smoke detectors. Beyond standard home, car and life insurance bundles, Nationwide offers unique opportunities to save money. You can get a premium discount for taking safety courses, joining an RV organization like the National RV Association and paying your annual policy upfront. Nationwide will also reduce your premium if you’ve insured your RV with another provider and maintained continuous coverage. Note that not all discounts are listed on Nationwide’s website, and some only come up during the quoting process. Pros Over 15 coverage options designed for every type of RV owner Option to suspend collision and liability coverage when your RV is in storage Full replacement cost coverage includes expert service to help you find a new RV Quotes available online and by phone Cons Not as many discount options as competitors Limited information about policies on its website D+ rating on Crash Network’s 2024 Insurer Report Card HIGHLIGHTS A.M. Best rating A (Excellent) Crash Network Insurer Report Card D+ J.D. Power U.S. Auto Claims Satisfaction Study Below average (672/1,000) NAIC Complaint Index Worse than most (3.45) Discounts Diminishing deductible, storage savings and low mileage discount Why we chose it: National General offers a generous purchase price guarantee during the vehicle model’s first nine years on the market. Other insurers don’t offer this if the vehicle is more than five years old. This optional benefit reimburses the customer up to the original cost of the vehicle if it’s stolen or totaled. RVs are also eligible for full replacement cost coverage during their first five model years, regardless of ownership (some companies limit this benefit

What to know about home warranties Home warranties cover system and appliance problems that occur from normal wear and tear, excluding damage from pre-existing conditions. Home warranty companies typically offer plans for home systems, appliances or a combination of both. Service call fees range between $60 to $150. Most home warranty companies have a waiting period before coverage starts. The companies on our list have, at least, a 30-day waiting period. Our selection of companies offers prices ranging from $19 to $95 per month. How we chose our top picks We first began reviewing home warranty companies in 2020. Since then, we’ve spent over a thousand hours researching the top providers in the country, thoroughly vetting 22 different companies. Our methodology focuses on four key factors: transparency in services offered, claims processing, cost and quality of customer service. Read the full methodology to learn more. Our Top Picks for Best Home Warranty Companies The companies listed below are in alphabetical order. 2-10 Home Buyers Warranty: Best Enhanced Coverage AFC Home Warranty: Best Premiums American Home Shield: Best for HVAC Cinch Home Services: Best Systems Plan First American Home Warranty: Best Starter Plan Liberty Home Guard: Best for Optional Add-Ons Select Home Warranty: Best for Roof Coverage Pros Offers up to 65% off in Whirlpool and GE brand appliances Color match for replaced appliances $5 monthly discount with auto-renewal Cons No coverage for garage doors or roof leaks (both are available as add-ons) Not available in Hawaii and Alaska HIGHLIGHTS Monthly Premiums Starting at $32 Available Plans 3 Service Fees $65, $85, $100 State Availability Nationwide, except AK and HI Response Time 48 hours BBB Rating A+ Why we chose this company: 2-10 Home Buyers Warranty’s premium plan covers a wide range of items most home warranty companies don’t, such as turntable platforms, rotisseries, ceramic cooktops and concrete-encased plumbing. 2-10 HBW offers three plans: Simply Kitchen, Complete Home and Pinnacle Home plan. All three plans come with 2-10 HBW’s Appliance Discounts Program with discounts up to 65% on Whirlpool and GE brands. The company will also match your appliance color during replacements and offer a $100 reimbursement if you decide to replace a broken appliance instead of requesting service. In addition, 2-10 HBW’s Service Fee Guarantee includes a service fee refund if your request is ineligible for service. You also won’t pay another service fee if the same component fails after receiving service. Read the full 2-10 Home Buyers Warranty review. Pros Array of additional benefits, from discounts to credit monitoring Clients can choose their own technicians Platinum Plan covers microwave ovens, ice makers and plumbing stoppages Cons One-day period for reporting issues with a system or appliance $75 plan cancellation fee System plan unavailable in some areas HIGHLIGHTS Monthly Premiums $43.67-$99.08 Available Plans 4 Service Fees $75, $100, $125 State Availability Nationwide, except HI, CA and WA Response Time 48 hours BBB Rating B Why we chose this company: AFC Home Warranty offers your choice of service contractors and affordable premiums, including two hybrid plans (that cover both systems and appliances). AFC Home Warranty (America’s First Choice) first caught our attention for its affordable premiums. AFC’s plans include a systems plan, an appliances plan and two hybrid plans covering both systems and appliances. In addition, AFC Home Warranty has one of the strongest service guarantees in the industry: both parts and labor are guaranteed for the life of the contract. As with other home warranty companies, AFC pricing depends on the chosen service fee ($75, $100, $125). Monthly premiums for one-year contracts range from $40 for the Silver Plan up to $112 for the most comprehensive plan (depending on your location). Read the full AFC Home Warranty review. Pros Largest home warranty service provider in the country Offers coverage for home electronics Highly customizable service plans Cons Repairs are only guaranteed for 30 days Plans unavailable in Alaska, Hawaii and New York City HIGHLIGHTS Monthly Premiums $30 – $90 Available Plans 3 Service Fees $100, $125 State Availability Nationwide, except Hawaii, Alaska and New York City Response Time 48 hours BBB Rating B Why we chose this company: American Home Shield offers free HVAC tune-ups with its premium plan and fewer restrictions in coverage than most competitors. With American Home Shield, choose from three comprehensive plans and customize them with add-ons for other systems and appliances, including home electronics and entertainment products. Together, AHS’ comprehensive plans — ShieldSilver, ShieldGold and ShieldPlatinum — cover more than 23 home appliances and systems. In addition, its premium plan, ShieldPlatinum, covers up to $1,500 for roof leak repair, HVAC tune-ups, code violations and AC refrigerant. Read the full American Home Shield review. Pros Available in 48 states 180-day workmanship guarantee Plans include rust and corrosion coverage Covers unknown pre-existing conditions Cons Higher deductibles than some competitors, from $100 to $150 Additional coverage options only available while getting a quote HIGHLIGHTS Monthly Premiums $30.99 – $93.99 Available Plans 3 Service Fees $100, $125, $150 State Availability 48 states, not available in AK, HI Response Time 48 hours BBB Rating A+ Why we chose this company: Cinch Home Services’ system plan includes coverage that other home warranty companies usually offer as an add-on. Cinch plans stand out for coverage of items other companies typically charge extra for, such as sump pumps, water dispensers and smoke detectors. Cinch’s appliance plan covers freestanding ice makers and built-in food centers, while its system plan covers sump pumps, doorbells, smoke detectors and tankless water heaters. Cinch services are backed by a 180-day workmanship guarantee on the work performed. This is considerably longer than the 30- and 90-day guarantees most companies offer (except for AFC Home Club, which offers a service guarantee for the life of the contract). Read the full Cinch Home Warranty review. Pros Affordable basic plan options with competitive coverage Essential and Premium plans cover improper installations and code violations Premium plan covers all costs related to refrigerant recharging Cons No systems-only plan Limited list of add-ons

The shutdown of the federal government has thrown a wrench in the 2026 COLA calculations. Here is what you need to know as we wait for the forced furloughs to end.