The federal government shutdown that began on October 1, 2025, has now stretched past 35 days, making it the longest in U.S. history. The budget standoff stems from political gridlock in Congress, with both parties proposing separate spending bills that ultimately failed in the Senate. Without a funding agreement, core government functions and services remain stalled.

The shutdown’s effects are now everywhere: millions of federal employees are furloughed without pay, travelers at airports experience long security lines and flight delays due to staff shortages, and essential social services like food stamps and housing assistance are facing funding disruptions. For many low-income families, these interruptions are causing serious hardship.

While crucial services like Social Security and Medicare continue largely unaffected for now, thousands of contractors and temporary workers remain in limbo, as do small businesses dependent on federal checks. Retailers, logistics companies, and service suppliers are reporting clear slowdowns as economic uncertainty spreads.

On the brighter side, banks and basic financial services have stayed stable. FDIC-insured banks and the payments system remain unimpacted by the shutdown, meaning customer deposits, digital banking, ATMs, and most transactions are operating as usual. However, for many awaiting federal paychecks or contracts, financial stress is intensifying, leading to tough choices and tighter budgets.

With Congress still at a stalemate, both households and businesses nationwide are demanding urgent resolution to restore normalcy and protect the most vulnerable. Economists and workers alike warn that the longer the impasse drags on, the bigger the potential hit to jobs, spending, and overall economic stability may be.