The U.S. federal government has now been shut down for four weeks due to Congress’s failure to pass a temporary funding bill. Jeff Jones, Associate Dean at Missouri State University’s College of Business, explained to Missourinet how this disruption affects various sectors of Missouri’s economy. He emphasized that federal operations influence many aspects of daily life, from national park access to agricultural support programs. When these services halt, the broader economic footprint of the federal government becomes more apparent to the public.
Jones highlighted concerns for Missouri’s farming community, noting that delays in federal aid—such as crop subsidies or drought relief—could slow financial disbursements to farmers. This aligns with statements from Missouri Agriculture Director Chris Chinn, who confirmed earlier this month that payments under the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs have already been postponed.
Military personnel stationed at Fort Leonard Wood, Whiteman Air Force Base, and Rosecrans Air National Guard Base may soon face financial uncertainty. While service members received their regular pay in the last cycle, Jones expressed doubt about whether this will continue into the next pay period. A Senate bill intended to guarantee military salaries by November 1 failed to pass. Although reports indicate an anonymous donor contributed $130 million to cover wages, it remains unclear if this amount will suffice for all personnel.
Another critical concern involves the Supplemental Nutrition Assistance Program (SNAP). Federal funding for SNAP expires this Saturday. Without renewal, over 667,000 Missourians could lose benefits, forcing many to rely on food banks. Jones pointed out that SNAP funds are almost entirely spent on groceries, meaning their absence would severely impact households already facing financial strain. Governor Mike Kehoe’s office warned of this looming cutoff.
The Trump Administration previously redirected tariff revenues to fund WIC benefits for low-income mothers and children. However, Jones cautioned that such measures are not sustainable long-term solutions, especially given the scale of federal spending. He warned that if the shutdown persists for another four weeks, Missouri and the nation could experience a “K-shaped” economic downturn—where higher-income individuals remain largely unaffected while middle- and lower-income groups bear the brunt of economic hardship.
According to Governor Kehoe’s office, Missouri’s Gross State Product could decline by $232 million each week the shutdown continues. This projection underscores the growing economic pressure on the state as federal inaction drags on.
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MSU dean on economic impact of government shutdown on Missouri and the U.S.
It’s now been four weeks since the federal government shut down over Congress’s inability to pass a temporary spending bill. n nJeff Jones, Associate Dean of Missouri State University’s Business school, told Missourinet that the federal government touches numerous points of the state’s economy: n n“You know, whether it be, ‘oh, I need to go do this, or I want to visit a National Park,’ or whatever, and when people encounter (that) those services aren’t available, I think it probably just raises awareness of exactly the overall impact of the federal government,” Jones said. n nHe specifically addressed Missouri’s agriculture industry. n n“When it comes to say, you know, federal government aid related to different types of programs, whether it be crops, whether it be drought assistance — I think it will potentially slow benefits that might be paid to farmers,” he said. n nMeanwhile, Missouri Agriculture Director Chris Chinn told Missourinet earlier this month that ARC and PLC assistance payments have already been delayed due to the government shutdown. n nAs for military personnel and their families at Fort Leonard Wood, Whiteman Air Force Base, and Rosecrans Air National Guard Base, Jones said they will soon feel the effects of the shutdown. n n“My understanding has been that, at least for the last pay cycle, members of the military have been able to receive their, kind of, normal paycheck,” he said. “I don’t know if that will happen here at the end of the month.” n nA bill that would have paid America’s service members on October 31st failed to pass the U.S. Senate late last week. Multiple media reports say an anonymous donor gave $130 million to the federal government to cover military salaries, but it’s not known if it will be enough for everybody. n nSNAP recipients, meanwhile, will likely have to switch from grocery stores to food banks, according to Jones. n n“You know, I think with SNAP benefits, for example, essentially 100% of that gets spent on groceries, right?” he said. “That’s going to be very unfortunate for those folks because they may not necessarily have income from another source to be able to, to buy food and things like that.” n nFederal funding for SNAP, formerly known as food stamps, runs out on Saturday. According to a press release from Gov. Mike Kehoe, more than 667,000 Missourians will lose SNAP benefits on Saturday unless funding is renewed. n nAmong the temporary measures enacted by the Trump Administration was using revenues from tariffs to fund WIC payments to low-income women with children. n n“I’m not an expert in the overall amount of tariff revenue that is being generated and collected relative to the operating budget of different federal entities, but I don’t see it again as being a permanent funding solution for a lot of these activities,” said Jones. n nHe added that another four weeks of the government being shut down could have a “dampening” effect and put Missouri and the rest of the nation into a “K-shaped” economy. n n“(That’s) where folks at the top are essentially feeling very little impact, but those kind of at the middle and the bottom are really feeling the brunt of the economic slowdown,” Jones said. n nGov. Kehoe’s press release also said that Missouri’s Gross State Product is estimated to drop by $232 million each week the shutdown continues. n nCopyright © 2025 · Missourinet