Shutdown crisis deepens: US losing $15bn each week; 40 airports to be closed

The US government shutdown has entered uncharted territory, becoming the longest in the country’s history. With no agreement between Republicans and Democrats, key services are now being disrupted and the economic impact is growing. Analysts estimate the shutdown is costing the economy about $15bn a week, as per Bloomberg.Air travel is the latest major sector to be affected. The Federal Aviation Administration says it will reduce flights across 40 busy airports from Friday because of severe staff shortages, and officials warn that delays and cancellations are likely to worsen if the shutdown continues.

The congressional deadlock centers on funding for healthcare subsidies and broader government spending. Democrats insist that expiring health insurance tax credits must be renewed and cuts to Medicaid reversed before any agreement is signed. Republicans, who control both chambers but lack the Senate votes needed to pass a spending bill alone, are pushing for a short-term funding measure without concessions. Trump has refused to engage in negotiations until the government is reopened, and at the same time has threatened to permanently sack thousands of federal workers.Nearly 1.4 million federal employees are either on unpaid leave or working without pay. Millions of Americans are already feeling the effects: food assistance has been disrupted, national parks shuttered, government-backed loans frozen, and key economic data suspended. The Congressional Budget Office estimates that growth could fall by up to two percentage points in the final quarter of the year — and that if the shutdown extends to Thanksgiving, around $14bn will never be recovered.

The most alarming consequences are now being felt in US air travel. The Federal Aviation Administration (FAA) says it will reduce flights by 10% across 40 major airports from Friday, citing severe staffing shortages. More than 400 shortages have been logged at FAA facilities since October 1 — four times higher than this time last year. Air traffic controllers have been working unpaid for over a month, many forced into mandatory overtime while struggling to pay bills or even transport costs to work.“We’re going to ask the airlines to work with us collaboratively to reduce their schedules,” FAA Administrator Bryan Bedford said. “We’re in new territory in terms of government shutdowns.”Major aviation unions and airlines warned that hundreds, if not thousands, of flights could be cancelled. Bedford admitted the agency “can’t ignore” the impact of exhausted and unpaid workers, adding that even if the government reopens, normal operations cannot resume immediately. Transportation Secretary Sean Duffy has issued some of the starkest warnings so far, saying controllers might miss a second full paycheck next week — a scenario he said could bring “mass chaos”, including the closure of airspace in parts of the country.During the past weekend alone, at least 39 flight control facilities reported potential staffing limits, compared to a pre-shutdown weekend average of just over eight. Travel industry leaders say confidence in America’s air system is being damaged, and the shutdown is “forcing difficult operational decisions” that could ripple across the global aviation network.

Despite the mounting crisis, progress in Congress is limited. Senate Majority Leader John Thune claims his “gut” suggests a breakthrough may be near, but Democrats and Republicans remain entrenched. Some moderates in both parties want a deal before Thanksgiving, though repeated Senate votes on a short-term funding plan have failed 14 times.The White House has adopted a more aggressive posture than in previous shutdowns. Trump has not only refused to guarantee retroactive pay for furloughed workers, but has openly sought to permanently fire “non-essential” employees. A federal judge blocked the attempt to lay off around 4,000 workers, but the administration is appealing. “Back pay depends on who we’re talking about,” Trump told reporters. “Some workers don’t deserve to be taken care of.,Essential services such as border control, hospital care and mail delivery continue, but many others are paralyzed. National monuments are shut, government-backed loans stalled, and the suspension of economic reports has fueled uncertainty among markets and policymakers.During the last shutdown in 2018–19, widespread flight disruptions finally forced an end to the blockade. Analysts warn history could repeat itself — but with air travel already at a breaking point and billions in economic losses mounting, the cost of political stalemate is rising fast. Whether Congress can reach a compromise, and whether the White House will sign it, remains the central unanswered question as the shutdown grinds toward a second month.