What's happened
The US government shutdown, now the longest on record, has halted pay for 1.25 million federal workers, disrupted flights, and slowed economic growth. While some losses are recoverable, lasting effects include reduced consumer spending and regional economic strain, especially in Washington, D.C. Today's date is Thu, 13 Nov 2025 18:05:34 +0000.
What's behind the headline?
The prolonged shutdown underscores the fragility of US fiscal and political stability. The disruption to economic data collection hampers Federal Reserve decision-making, likely delaying interest rate adjustments. The shutdown's impact on consumer sentiment and regional economies, especially in Washington, D.C., will have lasting effects. Federal workers' missed wages, totaling an estimated $16 billion, reduce spending and slow economic activity, with some purchases and travel never recovered. Airline cancellations and reduced tourism further depress local businesses. The political stalemate reveals a deeper polarization that risks future economic stability, as the shutdown's costs—estimated at around $11 billion in permanent losses—highlight the need for more sustainable fiscal governance. The economic slowdown, while unlikely to trigger a recession, will influence policy decisions and market confidence in the coming months, emphasizing the importance of resolving the impasse swiftly to restore stability.
What the papers say
The AP News and The Independent both report on the economic and social impacts of the shutdown, emphasizing the disruption to federal workers, flights, and regional economies. AP News highlights the slowdown in economic data affecting Federal Reserve decisions, while The Independent provides a detailed look at the local economic toll in Washington, D.C., including increased food insecurity and business downturns. Business Insider UK adds perspective on the potential long-term economic costs, estimating a permanent loss of around $11 billion and a slowdown in GDP growth. The contrasting focus between national economic impacts and regional/local effects illustrates the broad scope of the shutdown's consequences.
How we got here
The shutdown began on October 1, 2025, due to a political impasse in Congress over government funding. It has resulted in the furlough of federal workers, suspension of federal contracts, and disruption of economic data collection. The previous longest shutdown lasted 35 days in 2018-2019, but this current shutdown is more damaging due to its duration and scope.
Go deeper
Common question
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How Does the US Government Shutdown Impact the Economy?
The ongoing US government shutdown, now the longest on record, has significant effects on the economy, federal workers, and everyday Americans. Many are wondering how this shutdown affects their paychecks, travel plans, and the broader economic landscape. Below, we answer the most common questions about the shutdown's impact and what might happen next.
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How Is the US Government Shutdown Affecting People and the Economy?
The ongoing US government shutdown, now the longest on record, is having widespread effects on federal workers, the economy, and everyday Americans. Many are wondering how long this will last, what it means for economic stability, and what the future holds. Below, we answer some of the most common questions about this critical situation and its broader impact.
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