The US federal government shutdown has entered its second week, with the Senate still unable to pass a temporary funding bill, leading to a continued stalemate. As various funding sources are cut off, the impact of the federal government shutdown on daily life is gradually becoming apparent.
The aviation industry has been one of the most significantly affected sectors. Due to a shortage of air traffic controllers, flight delays have been frequent at major airports in cities like Dallas, Chicago, and Washington, D.C.
Transportation Secretary Sean Duffy stated that under normal circumstances, flight delays due to personnel shortages account for about 5%. However, currently, over half of the flight delays are a result of staffing shortages. The US Travel Association estimates economic losses of up to $1 billion per week.
Tax services are also contracting, with the IRS furloughing nearly half of its employees as funds run out. This week, around 34,000 employees have been forced to stay home, while approximately 40,000 employees are barely maintaining basic operations, preparing for next year’s tax season and implementing the Trump administration’s new tax laws.
The Taxpayer Advocate Service within the IRS is completely shut down.
Several social welfare assistance programs are facing depleted funds. Currently, the Women, Infants, and Children Special Supplemental Nutrition Program (WIC) is relying on its remaining $150 million contingency fund, which is running low. The White House has stated it will use tariff revenue to sustain operations but has not provided details.
The Supplemental Nutrition Assistance Program (SNAP), which provides food vouchers to 41 million low-income individuals, can only operate until the end of October.
Some national parks remain open but are operating with minimal staffing and maintenance services. Some states are using their own funds to keep parks open, but more parks may be forced to close. The Smithsonian museums and National Zoo are scheduled to close on October 11.
In addition, homeowners in flood-prone areas may be unable to obtain or renew their insurance policies under the National Flood Insurance Program (NFIP) due to the shutdown.
Economists estimate that for each week the government remains closed, the US GDP could decrease by 0.1 to 0.2 percentage points.
This shutdown has resulted in major government agencies suspending the release of economic data. The Bureau of Labor Statistics has postponed employment reports, and the Bureau of Economic Analysis has ceased operations, potentially delaying the release of the preliminary third-quarter GDP figures scheduled for October 30. Without official data, the Federal Reserve and market analysis institutions find it difficult to assess economic trends.
These data are crucial for adjusting interest rates, determining cost-of-living increases, and evaluating federal program costs. If the shutdown persists, it will affect annual inflation adjustments and the accuracy of government decisions.
This week, over 250,000 federal employees have not received their pay on time, and it is estimated that next week, 2 million federal employees may go without pay. The next pay day for Pentagon personnel is on October 15, and if they do not receive their wages then, it may become a political focal point.
In recent years, government shutdowns have become a political norm in the ongoing struggle between Republicans and Democrats. The last government shutdown was in 2019 and lasted a record 35 days.
The two parties are in sharp disagreement on healthcare aid policies. The Republicans advocate for a “clean” temporary funding bill to maintain current government spending for seven weeks to avoid a shutdown, while the Democrats demand an extension of subsidies under the Affordable Care Act, commonly known as Obamacare, to ensure millions of Americans do not lose health coverage due to funding cuts. The deadlock between the two sides has stalled negotiations.
White House officials warn that if negotiations remain deadlocked, the government may initiate widespread layoffs, forcing hundreds of thousands of federal employees into unpaid leave.
Concerns are growing that as the government shutdown continues, economic losses and political pressures are escalating in tandem. This standoff over the congressional temporary funding bill may indicate a protracted political impasse.