Shutdown impact: What it means for workers, federal programs and the economy
The Trump administration is using the current shutdown to buttress priorities it favors while seeking to dismantle those it doesn't. Nevertheless,
The shutdown began
Furloughs and firings
The federal government employed nearly 2.3 million civilian employees as of
Both groups of workers will get paid, but on a retroactive basis. That means they are facing the prospect of missing a full paycheck later this month after receiving a partial one earlier for work performed in late September.
The nation's 1.3 million active-duty service members got a temporary reprieve. They were looking at missing a paycheck on Wednesday. But Trump directed the Pentagon to redirect money. A second reprieve looks unlikely.
Of note for taxpayers, the government tab for paying furloughed workers while they are at home comes to roughly
The administration is also trying to fire thousands of federal workers in agencies that don't align with its priorities. Republican leaders in
The Republican administration has announced one reduction in force affecting 4,100 workers, with the biggest cuts happening at the departments of
“I think we’ll probably end up being north of 10,000,” Vought said.
“We want to be very aggressive where we can be in shuttering the bureaucracy,” Vought said. “Not just the funding, but the bureaucracy, that we now have an opportunity to do that.”
A federal judge has temporarily blocked the firings, saying the cuts appeared to be politically motivated and were being carried out without much thought.
Lawmakers acknowledge that many federal workers live paycheck to paycheck and will face some financial stress during the shutdown. Food banks in some communities have boosted efforts to help them. The
Economic Impact
Past shutdowns have had slight impacts on the economy, reducing growth in the quarter during which the shutdown occurs, but growth increases slightly in the following three months to help make up for it.
One estimate from
Some industries are hurt worse than others.
The
The
Political fallout
The party that insists on conditions as part of a government funding bill generally doesn't get its way. That was the case in 2013 and 2018 for
So far, the public is rather split on who is to blame for the impasse. Roughly 6 in 10 U.S. adults say Trump and
Perceptions could change depending upon how much the
The administration has put on hold roughly
In the end, there does not appear to be an easy way out of the shutdown.
Across the


Obamacare subsidies The GOP shouldn’t cave to shutdown demands
Quality, cost of Medicare coverage vary by state, report finds
Advisor News
- Could a narrower focus help grow your practice?
- U.S. debt hits $40 trillion: how to support concerned clients
- Flourish brings private-bank-like cash solution to MassMutual’s network
- Majority of Americans concerned recent market highs are unsustainable
- GLP-1 users choose between medication and retirement saving
More Advisor NewsAnnuity News
- MassMutual Expands Lending Options With New Secured Credit Line
- Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
- Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
- IMOs get frustrated with slow carrier adoption of faster technology
- New class-action lawsuit targets Delaware Life over annuity disclosures
More Annuity NewsHealth/Employee Benefits News
Life Insurance News