Government shutdown: How it affects Louisiana - KLFY News 10

Government shutdown: How it affects Louisiana

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Every state in the country uses federal dollars in some form or another-and Louisiana is no exception. So, what does this government shutdown mean for state programs funded by federal dollars?

Louisiana State Treasurer John Kennedy says most are mandated, therefore untouchable.

"The Medicaid program is funded by the federal government, so it won't be impacted," said Kennedy. The highway trust fund money is funded through a separate account, so it won't be impacted. And I don't think it will have an impact on food stamps, for example."

Kennedy says 40-50% of Louisiana spending comes from federal dollars. However, that money is put up-front, meaning, the money is already in place. So, as long as this shutdown is temporary, he thinks it will be business as usual.

"Now, if it lasts six months to a year, that's a different story. But, I don't think it will. It will probably last a week or a few weeks," said Kennedy. "So, I don't think we'll feel much of an impact."

But the one thing Kennedy does know is that if the shutdown lasts longer than one month and the debt-ceiling isn't raised, people would begin to notice rising interests rates on mortgages, auto loans and credit card bills.

"I think the biggest impact we'll see, at least short term, assuming shutdown doesn't last a long time, would be in the bond market. I think it will upset capital and market credits a little bit," said Kennedy.

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