Third Week of US Government Shutdown: Growing Economic Impact
The ongoing U.S. government shutdown, which began on October 1, 2025, has now entered its third week. With Congress remaining deadlocked over spending proposals, a resolution seems far from sight. The shutdown has led to the furlough of approximately 900,000 federal employees, while another 700,000 continue to work without pay.
Economic impacts are rapidly escalating. Key government data releases, such as jobs reports and Consumer Price Index data, are facing significant delays. This lack of official economic data is hampering the Federal Reserve’s decision-making process for potential rate cuts.
Small businesses are feeling the pinch particularly hard. The Small Business Administration is currently unable to process new loan applications due to the shutdown.
Air travel has been disrupted due to staffing shortages in air traffic control. Meanwhile, food assistance programs like WIC face funding uncertainties. The U.S. Chamber of Commerce has issued a stern warning, stating “the government shutdown is harming small businesses and costing American economic growth that can’t be recovered.”
Source: Washington Post