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Shutdown Reaches Day 37 as FAA Orders 10% Flight Cuts at 40 Major Airports

A standoff over expiring Affordable Care Act subsidies has stalled negotiations.

Overview

  • Transportation officials will start a 10% capacity reduction at 40 major airports on Friday, citing air traffic controller shortages and unpaid staff.
  • Courts forced partial November SNAP funding, and the administration says reserves will cover about 50% of normal benefits while states set distribution dates.
  • Revised furlough notices and an OMB legal view that the 2019 back‑pay law is not self‑executing have raised doubts about when furloughed workers will be paid.
  • About 650,000 federal employees are furloughed and roughly 600,000 are working without pay as agencies suspend data releases and other services.
  • Analysts estimate losses of roughly $10–$30 billion per week, with the CBO warning fourth‑quarter growth could drop by up to two points, while election results embolden Democrats and Trump urges Senate Republicans to end the filibuster.