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What Happens to Federal Financial Regulators in a Government Shutdown?

Absent a last-minute deal or extension, federal government funding will expire at midnight tonight, triggering a government shutdown. Based on funding source and how many “essential employees” are needed, each federal financial regulatory agency would be impacted differently.

The shutdown will not directly affect the operations of the federal banking agencies because they are not subject to appropriations. The FDIC and OCC are independently funded via bank assessments. The Federal Reserve System is funded through its market activities, and the CFPB is directly funded by the Federal Reserve.

However, the Financial Crimes Enforcement Network (FinCEN), the SEC, the Department of Housing and Urban Development (HUD), the IRS, the Commodity Futures Trading Commission (CFTC), and the Small Business Administration (SBA) are all subject to appropriations and would institute significant services rollbacks.

The Washington Post has developed an infographic showing the effect of a government shutdown on various agencies, as well as some frequently asked questions.