The United States continues through the 38th day of the longest federal government shutdown in its history. The closure began on October 1, 2025, after Congress failed to approve new funding, and economic losses now mount across the country.

The Congressional Budget Office estimates that a four-week shutdown cuts gross domestic product by around 1%. An eight-week closure could lower GDP by about 2%. Even after a reopening, the CBO projects that the economy will permanently lose about $7 billion in output after four weeks and $14 billion if the shutdown lasts eight weeks.

The Bipartisan Policy Center calculates that furloughs mean about $400 million in lost daily compensation for federal workers. Local economies near large federal workplaces feel the impact as consumer spending drops. Businesses that depend on government contracts also report delays and cash-flow stress.

The shutdown strains key safety-net programs. On November 1, around 42 million Americans temporarily lost access to Supplemental Nutrition Assistance Program benefits. Agriculture officials say SNAP payments for that month would cost about $9.2 billion, while the department’s contingency fund holds close to $5 billion. The administration argues that it cannot tap that fund without explicit approval from Congress.

Travelers also face growing disruption. Thousands of flights have seen delays or cancellations as unpaid air traffic controllers and security officers call in sick or struggle with financial pressure. Airlines warn that they may reduce schedules by up to 20% if the situation persists.

Federal Workers, Unpaid Furloughs, and Halted Public Services

The federal government has furloughed more than 670,000 employees without pay since October 1. Another 730,000 staff members continue to work but do not receive paychecks. Many households have now missed two pay periods and have turned to food banks and emergency loans.

Across five major civilian agencies - the Environmental Protection Agency, Education, Commerce, Labor, and Housing and Urban Development - between 71% and 89% of staff face planned furloughs. This group includes more than 64,000 people. The civilian workforce at the Defense Department faces the largest single impact, with almost 335,000 positions marked for furlough.

Health and Human Services also absorbs a significant blow. Around 32,460 workers, or 4% of the agency, face furloughs. As a result, the National Institutes of Health stopped admitting most new patients to its hospital. The Centers for Disease Control and Prevention has scaled back public communications and guidance to state and local health departments. 

Parts of the Food and Drug Administration slow down reviews of new drug and medical device applications. A federal judge has blocked more than 4,000 planned layoffs under “reduction in force” notices while legal challenges continue.

Law enforcement officers and immigration agents remain on duty. However, they also work without pay, adding to nationwide anxiety among public servants.

Political Deadlock in Congress Prolongs the US Government Funding Crisis

The shutdown stems from a sharp standoff between Republicans and Democrats over federal funding and health-care policy. Republicans control both chambers of Congress but hold fewer than the 60 votes needed in the Senate to end extended debate under the filibuster rule.

Democrats use that rule to demand an extension of Affordable Care Act subsidies that expire at year’s end and could expose millions to higher costs or loss of coverage. Republican leaders insist that lawmakers should reopen the federal government before debating the future of those subsidies.

The Senate has tried 14 times to advance a House-approved stopgap spending bill, but each attempt has failed. The House has not met in regular session since the shutdown began. Both parties trade blame as the funding gap widens.

State officials and travelers highlight the visible impact. New York’s governor shared images of packed airports and cancellation boards while criticizing what she called a “shutdown that has grounded America.” For millions of federal workers, contractors, and low-income families, the standstill now shapes daily life and financial security.

Also Read: US Stocks Edge Higher as Treasury Yields Fall and Government Shutdown Looms