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U.S. Shutdown Hits Day 36, Longest on Record

A dispute over health‑insurance subsidies has frozen spending, driving mounting economic costs.

Overview

  • Funding lapsed on October 1 after Congress failed to agree on a 2026 package, with Democrats rejecting proposals to remove subsidies for low‑income Americans’ health insurance.
  • Roughly 1.4 million federal employees are affected overall, with about 650,000 working without pay or furloughed, including air traffic controllers and other essential staff.
  • The Congressional Budget Office estimates a 1–2% hit to U.S. GDP with broader global spillovers, and EU losses were estimated at €16 billion for the first eight weeks.
  • Bloomberg reports the shutdown is costing about $15 billion per week, with economists warning of roughly $14 billion in permanent losses if it extends to Thanksgiving.
  • Service disruptions include reduced November food assistance funding by USDA, halted Head Start slots affecting more than 8,000 families, fewer airport controllers, and $2.5 billion in Small Business Administration loans blocked for 4,800 firms.