Another Government Shutdown Looms - What Travelers Need to Know About Travel Insurance

ST. PETERSBURG, Fla., Jan. 28, 2026 /PRNewswire/ -- With another potential U.S. government shutdown approaching if Congress doesn't reach a funding agreement by January 30, 2026, leading travel insurance comparison site, Squaremouth, wants travelers to understand how it could affect their travel plans.

What Impacts Could Travelers Face?

Unfortunately, both the TSA and air traffic controllers at the FAA are part of the government shutdown funding debates. If a partial shutdown occurs, these essential workers could go without pay, potentially resulting in long security lines, flight delays, cancellations, and staffing shortages, as we saw during the 43-day shutdown that began last October.

Can Travel Insurance Offer Protection?

Most standard travel insurance policies do not cover government shutdown-related disruptions. Even travelers who already have coverage likely are not protected, unless they purchased certain additional benefits.

The only applicable benefits that can protect you from delays and cancellations during a government shutdown are Cancel For Any Reason (CFAR) or Interruption For Any Reason (IFAR). These benefits can provide partial reimbursement for your trip costs if you have to cancel or cut your trip short for any reason.

CFAR and IFAR must be purchased within 14–21 days of your initial trip deposit. If you are within that window and have concerns about a shutdown impacting your plans, buying these benefits now will give you the most coverage possible.

If you forgo these, you're rolling the dice, but you may still be covered. Coverage can vary significantly by provider and policy, so it's important to read the fine print of every plan you're considering.

And a government shutdown isn't the only reason travelers consider CFAR or IFAR; these benefits can also help if plans change due to additional winter storms or other unexpected events, like the military action we've seen in Venezuela.

For an in-depth overview of travel insurance coverage during a government shutdown, read Squaremouth's guide: Travel Insurance Coverage for the Government Shutdown.  

About Squaremouth
Squaremouth is a trusted travel insurance comparison platform with over 20 years of experience. Known for its no-nonsense approach, award-winning customer service, and commitment to transparency, Squaremouth has helped more than 4 million travelers easily search, compare, and buy coverage. Squaremouth offers the largest portfolio of carriers and products in the U.S.

Contact
Lauren McCormick
Manager, Public Relations & Social Strategy
[email protected]

SOURCE Squaremouth