Flights, services, loans: What happens if US government enters a shutdown

The United States is heading towards a government shutdown amid a deadlock in Congress as Republicans urge deep spending cuts. The new US fiscal year begins on October 1 but the Republican Party has prevented passage of the bills needed to keep the government funded which may result in a shutdown that could be "credit negative" for US sovereign debt as per credit ratings agency Moody's. Here's what is likely to happen if the US government shuts down:

No pay for federal workers

Federal employees would be furloughed without pay while members of the military and other workers deemed to be essential would continue working without a paycheck. This would mean almost 1.8 million federal workers may not be paid for the duration. Around 850,000 non-essential workers would be furloughed.

Essential services only

Operations classified as essential will continue to operate- air traffic controllers, border patrol agents and hospital staff. However, many services would likely be affected- new applications for Social Security and Medicare, food and environmental site inspections, and national parks.

Read more: Explained: How a US government shutdown would affect its foreign policy

Economic impact

Goldman Sachs estimated that a shutdown would impact economic growth in the fourth quarter by 0.2 percentage points for every week it continues.

"While some funding lapses have ended very quickly, the political environment going into the deadline is more reminiscent of the situation preceding longer shutdowns in the past," it said.

Federal government data

The shutdown would also pause the publication of federal government data- a real concern for the US Federal Reserve. Without fresh data, the central bank would be forced to make decisions for the US economy without having a clear picture.

Court and Congress

The president and members of Congress will continue to work and get paid. The Supreme Court would be unaffected by a short shutdown. The rest of the federal judiciary also would operate normally for at least the first two weeks of October.

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