Good morning, friends.
Welcome to day 8 of a federal government shutdown. At this point, there are no serious discussions to reopen the government, which will take a bipartisan solution between congressional leaders and the White House. Barring some unforeseen development, we expect the shutdown to persist for several more days, if not weeks.
The Trump Administration has directed agencies to prepare for mass layoffs—a step beyond standard furlough procedures. In another break from precedent, the White House has also indicated that federal employees may not receive automatic back pay unless Congress explicitly authorizes it. These hardball tactics add a new chapter of uncertainty for federal workers, contractors, and programs that depend on uninterrupted funding.
Impact on Federal Agencies
Federal Courts: The judiciary will continue operations through October 17 using non-appropriated funds. After that date, courts will have to determine which staff and functions qualify as “essential” under Antideficiency Act constraints.
Air Travel and Transportation: The Federal Aviation Administration (FAA) and Transportation Security Administration (TSA) continue to operate, but air traffic controllers and TSA agents are working without pay. Many safety, training, and administrative functions are suspended, leading to increasing delays at major airports. Major airports across the country are already reporting being short-staffed, leading to several temporarily shutting down their control towers.
National Parks and Public Lands: The National Park Service (NPS) has closed most indoor visitor centers, interpretive programs, and ranger services. Some open-air areas and trails remain accessible, though without staffing or maintenance.
Health and Research Agencies: Agencies such as the Centers for Disease Control and Prevention (CDC) and the National Institutes of Health (NIH) have curtailed “non-critical” programs. The CDC has furloughed 64% of staff but will continue to monitor for disease outbreaks. Health and Human Services (HHS) has furloughed 41% of staff.
Communications and Regulation: The Federal Communications Commission (FCC) has furloughed approximately 81% of its staff. Licensing, rulemaking, and regulatory enforcement are paused, though emergency communications systems remain active. Approvals for new equipment are paused, but the planned spectrum auction required by Congress is continuing.
Social Programs: Mandatory entitlement programs, such as Social Security, Medicare, and Medicaid, continue to operate. However, some discretionary programs—such as the Women, Infants, and Children (WIC) nutrition assistance program—are at risk of running out of funds if the shutdown persists another week.
Federal Workforce: Roughly 750,000 to 900,000 federal employees have been furloughed, while hundreds of thousands more remain on the job without pay. The longer the shutdown lasts, the greater the strain on essential government services and household finances for federal workers.
State and Local Impact: The administration has also frozen approximately $26 billion in federal funds earmarked for transit and climate initiatives in Democratic-led states, using the funding lapse as leverage in ongoing negotiations.
What to Watch
Military Paychecks: 1.3 million members of the US armed forces are due a paycheck on October 15, but will not receive it if the shutdown has not been resolved by then. This could serve as a deadline for both parties, as neither side wants to risk being blamed for pausing military pay.
Judiciary Funding: The federal courts’ reserve funds will be depleted after October 17, forcing tough decisions on which judicial functions can legally continue.
Workforce Impacts: Agencies may begin implementing reduction-in-force measures (layoffs) rather than traditional furloughs if the shutdown continues.
Back Pay Authorization: Without explicit congressional approval, federal employees may not receive retroactive pay once the government reopens.
Economic Ripple Effects: Extended shutdowns could impact state and local grant programs, infrastructure projects, and private contractors that rely on federal funding.
As always, we are closely following this situation and available to answer specific questions about how the shutdown may affect your organization.
Sincerely,
The Bridge Team
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