How the recent US government shutdown affects workers and waiters

Wed Oct 01 2025
Rajesh Sharma (2173 articles)
How the recent US government shutdown affects workers and waiters

The United States government has once again shut down, marking the 11th occurrence in the past 40 years. This situation is anticipated to result in over 750,000 federal employees being furloughed, while numerous others are set to continue their work without receiving salaries. A government shutdown takes place when Congress does not succeed in passing the necessary funding legislation to maintain the operations of the federal government. The most recent shutdown comes after the Republican-controlled Senate was unable to pass crucial funding bills by midnight on Tuesday. The Senate necessitates a 60-vote majority for the passage of such bills. With Republicans holding merely 53 seats, they required Democratic backing to achieve approval.

Democrats withheld their support for the bill, arguing that its provisions could render healthcare less accessible for ordinary Americans. The leverage was utilized to overturn the Medicaid cuts included in President Donald Trump’s significant legislation passed this summer and to prolong tax credits that render health insurance premiums more accessible for millions of individuals. However, the Republicans proposed a short-term measure to fund the government generally at current levels, as reported. In a joint statement, Democratic leaders charged Trump and Republicans with shutting down the federal government, asserting that after months of policies that have made life harder and more expensive, they are refusing to protect Americans’ healthcare. In a similar vein, the Republicans held the Democrats accountable for the shutdown, resulting in a deadlock. In anticipation of the shutdown, federal agencies released plans detailing which employees would remain on duty and which would be placed on furlough. Departments such as Homeland Security and in-hospital medical care, among others, are maintaining the majority of their employees on duty. Some companies are furloughing a significant number of employees, indicating that these workers are not obligated to attend their jobs.

As per reports, the departments experiencing the most significant furloughs are as follows: the Department of Defense has furloughed 334,904 civilian staff while retaining 406,573; the Department of Health has seen 32,460 furloughed and 47,257 retained; the Department of Commerce has 34,711 furloughed and 8,273 retained; the Department of State has 16,651 furloughed and 10,344 retained; and the National Aeronautics and Space Administration (NASA) has 15,094 furloughed with 3,124 retained. Essential employees will continue to work, yet they will not receive their salaries immediately, while furloughed workers are also experiencing delays. Both individuals are entitled to back pay once the government reopens. An important distinction in this matter is that Congress members have their salary safeguarded by the Constitution. Some individuals, such as Democratic Senator Andy Kim, have committed to relinquishing their salaries during a shutdown, asserting that “government leaders shouldn’t be playing with other people’s chips.” The shutdown is anticipated to cause considerable slowdowns and possible layoffs.

In anticipation of the shutdown, former President Trump remarked that “vast numbers of people” could face layoffs, describing the consequences as “irreversible,” as per reports. The shutdown may also impede services, including air travel. During the last shutdown, air traffic controllers and Transportation Security Administration workers, deemed essential, were required to continue their duties. However, many of them began calling in sick, leading to significant airport delays, the report noted. Philip Swagel stated that a brief government shutdown has a limited economic impact, especially since federal employees are legally entitled to back pay. However, if a shutdown persists, it may lead to uncertainties regarding the government’s role in our society, as well as the financial implications for all the programs funded by the government.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.