Shutdown Affects US Economy, Continues Into Second Week

The U.S. Capitol Building is shown in Washington, D.C., home to the United States Congress and seat of the legislative branch of government. The federal government shutdown has dragged to this week, with no end in sight. Photo by Ramaz Bluashvili, Pexels.
News Release
WASHINGTON, D.C. — The second week of the federal government shutdown is bringing growing disruptions across the country as the standoff between Pres. Donald Trump and Congress shows no signs of resolution.
Air travel, tax services and national parks are among the first sectors feeling the strain. More than 250,000 federal employees missed paychecks this week, and another two million could go without pay by next week. If the shutdown is not ended by the Pentagon’s Wednesday, Oct. 15 payday, military personnel will begin missing pay for the first time in decades.
Airports from Dallas to Washington, D.C. have reported delays tied to air traffic control staffing shortages, which now account for more than half of flight delays. The U.S. Travel Association estimates losses of about $1 billion in travel spending each week. The IRS has furloughed nearly half its workforce, sending home roughly 34,000 employees while another 40,000 remain on duty to prepare for tax season. The Taxpayer Advocate Service has closed completely.
National parks remain open in some states with limited staffing and sanitation, while others are closing entirely. Smithsonian Museums and the National Zoo are closed.
Programs providing food assistance, including the Women, Infants and Children nutrition program, or WIC, are running low on funds.
Economists estimate the shutdown could trim 0.1 to 0.2 percentage points from GDP each week it continues. Federal data releases have largely halted, leaving policymakers without key economic indicators.
Political analysts say the coming weeks will test whether the White House and Congress can reach a funding deal before wider disruptions take hold.