LSU professor explains how the government shutdown could impact Louisiana

BATON ROUGE, La. (Louisiana First) — As the federal shutdown continues, IRS operations are on hold, delaying refunds, freezing credits, and sidelining contractors, with the effects already rippling through Louisiana’s economy.

Del Wright, a law professor at LSU, says the shutdown is already straining the state’s economy and could worsen if it drags on past this week.

“In simplest terms, the government stops funding a lot the things that aren’t essential to the operation of the U.S. government,” said Wright.

Essential services such as the military and some law enforcement will continue operating, but many others, including IRS functions, infrastructure projects, and certain public offices, are paused or slowed down.

At its core, the shutdown is about where federal dollars should go. Wright pointed to Medicare funding and other budget priorities as the main sticking points.

“The Democrats have basically said we’ve approved certain funding, and the president said, ‘I’m not actually going to fund those things.’ And because of that disagreement, the two sides said ‘No, we need some better agreement on that,'” said Wright.

According to Wright, Louisiana receives about $170 billion in federal grants, though Wright notes that many of these are block grants that have already been allocated and won’t be immediately affected.

“A lot of that is not going to be affected because it’s a block grant and it’s already done,” said Wright.

However, federal contractors and employees working on certain projects will be affected by the shutdown.

“Those things aren’t going to go forward because many of those employees are going to be furloughed,” said Wright. “Where we’ll likely see the most impact in the Capital Region is bridges, clean water, clean air, roads, and healthcare.”

For everyday people, the shutdown means delays in services we rely on, like longer lines at airports and slower travel processes.

“TSA workers, even though they aren’t furloughed, have to keep showing up. But for many of them… this happened in the last shutdown, after a few weeks they started calling in sick and doing other jobs because they had to put food on the table,” said Wright.

Wright also explains that the shutdown will impact the Social Security Office.

“If they’re furloughed, social security is still going to work; they’re still going to send out checks. But if someone needs help, there might not be anybody there,” said Wright.

Wright says in the midst of the uncertainty, he has one message for the American people. He urges Louisiana residents to be financially cautious during the shutdown.

“Save as much as possible because we really don’t know how long this will last, and you have to protect your family,” said Wright.

He recommends delaying non-essential spending and putting extra money into savings, especially for those who rely on federal services or contracts.

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