US faces historic shutdown costing $15 billion a week as Trump, Democrats remain deadlocked

The United States has entered its longest government shutdown ever, surpassing the 35-day record set during Donald Trump’s first term, with mounting economic losses and warnings of nationwide travel chaos as the political impasse over health care funding drags on.

Since Congress failed to approve funding past September 30, nearly 1.4 million federal employees from air traffic controllers to park wardens have either been furloughed or are working without pay. Analysts estimate the shutdown is costing the US economy around $15 billion each week, with ripple effects across aviation, retail and social welfare sectors.

According to a Bloomberg analysis, the continuing deadlock is eating into GDP growth, with businesses delaying investment decisions and consumer confidence dipping ahead of the holiday season. Federal agencies have been grinding to a halt and critical welfare programs including the Supplemental Nutrition Assistance Program (SNAP) which helps 42 million Americans buy groceries — hang in limbo.

As the shutdown entered its sixth week, the Trump administration warned that airport operations could soon collapse if funding isn’t restored. Transportation Secretary Sean Duffy said the absence of pay for more than 60,000 air traffic controllers and Transportation Security Administration (TSA) officers could lead to “mass cancellations” and even partial airspace closures.

“You’ll see mass flight delays, cancellations, and we may have to close certain parts of the airspace,” Duffy said at a news conference in Philadelphia. The warning comes as the American Automobile Association (AAA) projects a record 5.8 million domestic flyers over the Thanksgiving weekend.

The White House has also cautioned that increased absenteeism among airport staff could mirror the 2019 shutdown, which ended after widespread sick calls caused severe delays and public outcry.

Welfare in limbo and political defiance

President Trump has stood firm against Democratic demands to extend expiring health insurance subsidies, calling them “fiscally reckless.” Democrats, meanwhile, have refused to support reopening the government without a deal to safeguard the subsidies, which help millions afford medical coverage.

Trump has sought to raise pressure by threatening cuts to federal programs, including SNAP, though courts have blocked any immediate suspension of benefits. The administration later clarified that it was working to release partial payments “as quickly as possible.”

In an interview with CBS News, Trump said he would “not be extorted” by Democrats, blaming them for “using vulnerable Americans as bargaining chips.”

However, signs of fatigue are emerging within both parties. A small bipartisan group of centrist lawmakers has proposed a compromise framework to reduce health insurance costs and break the impasse. But so far, neither party’s leadership has shown serious interest in negotiation.

Economic cost of gridlock

Economists warn that the prolonged shutdown threatens to erase the gains of the US’s recent investment boom. The Washington Post reported that private sector momentum, driven by manufacturing and tech investments could slow sharply if federal contracts, inspections, and permits remain frozen.

The Wall Street Journal estimates that every week of shutdown reduces annualised GDP growth by 0.1 to 0.2 percentage points, with the burden falling disproportionately on working-class families and small businesses dependent on federal spending.

“Government shutdowns aren’t just about missed pay checks; they undermine business confidence, delay procurement, and disrupt services that keep the economy running,” said a senior analyst cited by Reuters.

A deepening political and social crisis

For millions of Americans, the shutdown has become a symbol of political dysfunction. Welfare recipients are struggling to access food aid, airport workers are skipping shifts, and national parks remain closed.

Democrats believe the growing public frustration will eventually force Republicans to compromise, especially as health insurance premiums climb during the open enrollment period. But Trump, emboldened by conservative allies, appears determined to hold out, betting that Democrats will face greater blame for the stalemate.

With each passing week, the cost both economic and social continues to rise. As the shutdown stretches into its record-breaking phase, the world’s largest economy faces not only lost productivity but also deepening political scars that may outlast the crisis itself.

With inputs from agencies