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2025.11.03 15:36 GMT+8

US government shutdown nears record, deepens economic and social strain

Updated 2025.11.03 15:36 GMT+8
CGTN

Residents line up to receive meals provided for furloughed federal workers at José Andrés' World Central Kitchen free meal distribution site in Washington, D.C., United States, October 31, 2025./ VCG

The US federal government shutdown entered its 33rd day on Monday, making it the second-longest in history and just two days short of the record 35-day shutdown in 2018–2019. The prolonged budget impasse is now weighing heavily on the economy, public services, and national confidence.

The release of third-quarter GDP data was postponed to October 30 as federal agencies remain closed, leaving policymakers and businesses without vital economic indicators. Economists warn that the "data blackout" may distort market expectations and delay corporate investment decisions.

Financial pressure is also mounting on the military. The Treasury and Pentagon had to divert $5.3 billion from various defense accounts to cover the October payrolls. Officials have cautioned that without new funding, US troops may go unpaid by mid-November, potentially disrupting operations and defense procurement.

The shutdown also threatens millions of vulnerable Americans. The Department of Agriculture confirmed that once current funds run out, no additional money will be available for the Supplemental Nutrition Assistance Program, which supports more than 42 million people. Food banks are already preparing for a surge in demand.

Flight cancellations are displayed on screens at Orlando International Airport in Orlando, Florida, United States, October 30, 2025./ VCG

Transportation is another looming concern. US Vice President JD Vance has warned that if the shutdown lasts into the Thanksgiving travel season, air traffic could face a "disaster," with unpaid staff from the Transportation Security Administration and the Federal Aviation Administration causing delays and cancellations.

The tourism and cultural sectors are also taking a hit. Dozens of national parks, museums, and monuments have closed or reduced operations, cutting off a major source of tourism revenue in states like California, Arizona, and New York. Travel groups estimate that the industry could lose over $100 million in tourist spending each day as the shutdown continues, while cities reliant on federal attractions — such as Washington D.C. — have reported sharp declines in hotel occupancy and restaurant sales.

Harvard Professor Linda J. Bilmes noted that such shutdowns are "highly destructive," eroding public trust in the government. The 2018–2019 government shutdown cost the US economy an estimated $11 billion. With this one nearing a historical length, analysts are concerned that the long-term damage may become even more severe — both economically and politically. 

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