October Update: The shutdown has occurred. We hope the tips in the article will be useful to our readers and their clients.
According to a 2025 report by Investopedia, 67% of American workers are living paycheck to paycheck.
According to ABC News, “If there is a shutdown, as many 4 million federal employees, including some service members, could go without a paycheck. Hundreds of thousands — including airport security officers, air traffic controllers and certain members of the military — will be deemed essential workers and told to come to work anyway. ICE agents also go without pay. National parks could close and the Smithsonian museums also typically close within a few days.”
If the federal government shutdown happens, and if it is prolonged, it will undoubtedly have a significant impact on many government workers and those in sectors that serve them, especially if they were already living paycheck to paycheck.
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If the shutdown hits the 30 day mark, many of these who are renters, will have crossed the rent-is-due date without a paycheck in hand. Ditto for mortgage holders. Here’s what we’re hearing around the land:
- During the last government shutdown, the U.S. Office of Personnel Management (OPM) issued sample letters that tenants could use if they wanted to offer a trade to their landlords – chores for rent. This really isn’t so far-fetched if you happen to have a landlord who regularly hires people to do chores – if you can save the landlord money and avoid being dinged for the late rent, you might actually come out ahead. OPM suggests you talk to your landlord first to see if he or she is amenable to entertaining such an offer. OPM also suggests offering to pay part of the rent now and the rest when the government shutdown ends.
- Some landlords did not want to wait for the shutdown checks to arrive and began eviction processes. “Your [apartment] complex is not in the business of furnishing free rent,” read one not-so-friendly letter from a landlord.
So, what can you do if you are facing a cash shortfall and your rent is due? Here are some suggestions:
- Be sure to be open and honest with your landlord. It’s likely the landlord has heard about the government shutdown, but he or she might not know you’re one of the people affected. Talk regularly with your landlord instead of going into hiding and pretending you’re not home when someone knocks at the door.
- Consider asking your landlord for a reduced payment during the shutdown. If you could pay half your rent instead of 100%, your available cash will last longer. Be sure to put this agreement in writing so that both you and your landlord understand exactly what is expected of each other.
- See if your landlord will accept a credit card in lieu of a check. We tracked down a list of services that will act as third-party transferors of rent payments if your landlord doesn’t accept credit cards and you want to pay this way. Note there are fees involved, which might not sit well with your landlord, so negotiating the fees might be part of your discussion. But as ThePointsGuy.com points out, you might get points on your credit card for the cash you spend, so that’s a small benefit.
- If you have a piggy bank to raid, you can opt for a cash payment of rent. Just make sure you get a receipt since there’s no canceled check or bank transaction to verify your payment.
- One option might be to hand your landlord an undated check and explain that you will date the check as soon as the shutdown ends and you get your back pay. At least that will appear to be acknowledgement that you recognize the debt and intend to pay.
- Consider signing a loan agreement with your landlord. Your signature on a document might go farther than a handshake to let your landlord know you intend to pay up when the money comes in.
- Apply for emergency assistance. Modest Needs is one organization that is collecting funds and making them available to federal workers who are in urgent need of assistance. Other organizations that offer hardship grants include The Salvation Army and Catholic Charities, USA, and there might be local organizations who are helping out where you live. Search “hardship loans” in your locality.
- Find a roommate – quick! Check among your co-workers, family, and friends to see if someone is looking for space and can pay some rent.
Do you want to help? Modest Needs is taking donations specifically to help those in need as a result of the government shutdown. Visit Modestneeds.org to make a donation.
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