U.S. Shutdown Threatens Pay, Services and Housing

The federal government shutdown that began Oct. 1 remains unresolved after the Senate failed to pass a stopgap spending bill and lawmakers adjourned for the holiday weekend, leaving looming payroll deadlines for federal workers. Hundreds of thousands of civilian employees face furloughs, reduced pay or unpaid work, and analysts warn that 1.7 million service members could miss full pay, forcing some to incur debt or jeopardize access to medicines. Essential services are strained: air-traffic controllers and TSA agents are working without pay, staffing shortages threaten more flight delays, EPA cleanup and regulatory work has been curtailed, and Smithsonian museums remain closed. The lapse has halted the National Flood Insurance Program and slowed some USDA and HUD functions—imperiling mortgage closings in high-risk flood zones and pushing buyers toward costly private policies that could stall thousands of home sales. Food assistance and agricultural relief are under pressure: SNAP and WIC are secure only short-term, multibillion-dollar White House and USDA farm-aid plans and a paused $531 million Georgia relief tranche have been delayed, and regional food banks are bracing for higher demand. Politically, the impasse centers on Democrats’ push to extend temporary health-insurance subsidies set to expire this year as Republicans press opposing demands and make misleading claims, and analysts warn broader economic risks are mounting if the standoff continues.