 "US govt shutdown nears record length: What it means for workers, federal programmes and the economy")
The federal government shutdown, now approaching the second-longest in US history, continues to disrupt the lives of millions of Americans.
The closure, which began on October 1, has furloughed an estimated 750,000 civilian federal employees daily, according to the Congressional Budget Office, while nearly 2.3 million federal employees remain on payroll as of March 31.
Workers designated as “excepted” continue to provide essential services, but both groups face delayed paychecks, adding financial strain. The nation’s 1.3 million active-duty service members temporarily avoided missing a paycheck after President Donald Trump directed the Pentagon to redirect funds, NBC News reported, though a second reprieve appears unlikely.
Administration pushes policy priorities
Beyond the immediate workforce impact, the Trump administration is reportedly using the shutdown to reinforce priorities it favours and dismantle those it does not. White House budget chief Russ Vought told NBC News on “The Charlie Kirk Show” that the administration plans to implement thousands of reductions in federal workforce, saying, “We want to be very aggressive where we can be in shuttering the bureaucracy. Not just the funding, but the bureaucracy, that we now have an opportunity to do that.”
A federal judge has temporarily blocked firings affecting 4,100 workers, citing concerns over political motivation, while the White House expressed confidence in prevailing on the merits in future legal action.
Economic and sectoral repercussions
The shutdown is also reverberating across the economy. Oxford Economics estimates that each week of closure reduces US economic growth by 0.1 to 0.2 percentage points, potentially slashing quarterly growth by up to 2.4 points if the closure persists.
Certain sectors are disproportionately affected. The US Travel Association forecasts a weekly loss of $1 billion as national parks, historic sites and Washington-based attractions remain closed. The Small Business Administration has suspended new loans, affecting approximately 1,600 small businesses and withholding $860 million weekly, NBC News reported.
Delays in flood insurance issuance have also disrupted mortgage closings and real estate transactions, while Federal Aviation Administration staffing shortages have caused widespread flight delays from Boston to Dallas.
Political standoff and public perception
Negotiations between Republicans and Democrats remain stalled, with neither side willing to compromise. Senate Majority Leader John Thune told NBC News, “We’re not conducting negotiations in a hostage situation,” insisting health care discussions must occur after the government reopens.
House Democratic Leader Hakeem Jeffries countered, saying, “We are not going to bend and we’re not going to break because we are standing up for the American people.” Public opinion is split: the AP-NORC Center for Public Affairs Research found that roughly 60% of Americans hold Trump and congressional Republicans largely responsible, while 54% attribute significant responsibility to Democrats.
Impact Shorts
More ShortsImpact on federal programs and infrastructure
The administration has also suspended funding for critical infrastructure and energy projects. Approximately $18 billion for a new rail tunnel under the Hudson River and the Second Avenue subway extension in New York is on hold, along with $7.6 billion in clean energy grants supporting hundreds of projects in 16 states, according to BBC. These delays primarily affect Democratic-leaning states and cities, raising concerns about the intersection of policy priorities and shutdown strategy.
Looking ahead
As the shutdown continues, millions of Americans remain in limbo, balancing the need for essential services against the political standoff in Washington. Past shutdowns have had only temporary economic impacts, but the growing scope of closures and workforce reductions underscores the stakes. With both parties entrenched and the public split, resolution may require significant compromise or risk the shutdown becoming the longest in US history.
With inputs from agencies
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