On Wednesday, the U.S. government shutdown surpassed a record 35 days, putting the country in truly uncharted territory. And despite the protests of politicians on both sides of the aisle, there’s no end in sight. In fact, day 36, 37, and 38 are feeling more likely than any sort of quick, unexpected resolution.
Truthfully, it might have to come out of thin air. For many reasons, this shutdown has been unlike any other. Republicans have been unable to collect the necessary votes to pass a short-term funding bill called a continuing resolution (CR), largely because they hold that there’s “nothing to negotiate.”
Of course, they need votes from Democrats, who say they’ll pass that CR in the event that Republicans agree to extend enhanced tax credits for Obamacare. These credits are expiring for over 24 million Americans, mostly in states which voted for President Donald Trump, and saddling policyholders Americans with dramatically higher Marketplace healthcare premiums.
There are signs that the end could be near, with a frustrated President Donald Trump voicing frustration that Republicans won’t use the “nuclear option” to reopen the government, harming their reputation. At any time, Republicans could reopen the government by suspending the filibuster, dropping the required votes to pass a continuing resolution (CR) to just 51 votes. At this point, that viewpoint has not been very appetizing to Republican Congress leaders.
So until then, the shutdown rages on — with the murmurs of backroom discussions, negotiations, and the nuclear option still making the rounds. In the meantime, government agencies are interrupted, over a million federal workers are going unpaid, and the impacts continue to grow.
Here are some of the biggest weights on America as the shutdown enters day 36:
Low Visibility Economy
During the shutdown, the U.S. government has not been operating without key data from the Department of Labor. It means that Americans have little visibility into what’s happening in the economy during a precarious time. In recent months, payrolls have slowed considerably, while inflation has shown signs of accelerating. The absence of ‘official’ economic reports means that economic, political, and financial leaders must rely on other private and public data streams.
SNAP and WIC Benefits Face Haircut
Over 42 million Americans rely on the Supplemental Nutrition Assistance Program (SNAP) to feed themselves, with a majority being children or adults over 60. Historically, SNAP funding has been paid out during shutdowns. However, President Donald Trump has indicated that food benefits will only be distributed after Democrats reopen the government.
Trump’s comments fly in the face of court orders which have forced him to use emergency funds to pay out SNAP benefits. His administration says that they are “fully complying” with these orders and will make partial payments of benefits. Still, the cuts to SNAP benefits is particularly precarious for some U.S. firms like Walmart, which count over a quarter of its revenue from the program. Some of the biggest trickle down effects could weigh on the grocery, trucking, and agricultural industry.
A small consolation is that some state governments are stepping in during the SNAP shutdown. States like New Mexico, Vermont, and Virginia have increased funds for food banks and offered direct financial aid, while Louisiana is providing direct financial aid. That said, while many states are increasing food bank funds, some states like Texas and Florida are not providing any supplementary aid.
LIHEAP Runs Out of Power
The Low-Income Home Energy Assistance Program (LIHEAP), another federal safety net which helps over 7.1 million households cover energy costs, is also expected to run out of funds this week. When it does, millions of Americans who rely on the program to heat their home might have to go without, at least until the government reopens.
Flight Cuts Incoming At 40 Airports
U.S. Transportation Secretary Sean Duffy warned of “mass chaos” if the government shutdown continued into next week, assuring delays, cancellations, and even the closure of airspace due to callouts by air traffic controllers. However, the Department of Transportation might be playing a role in accelerating the mass chaos by pruning hundreds of flights going into the busy holiday period.
Per Reuters, the Federal Aviation Administration will cut 10% of flights at 40 U.S. airports, citing safety. The impacts stand to affect thousands of flights, but the finer points of which airlines might be impacted by the cuts won’t be known until the agency announces which airports will be affected. It’s also hard to know at this stage whether airlines will “Act of God” their way out of liability for the cancellations.
This much is known about the 40 airports, though: if Trump’s existing policy attitudes have any input in the decision, it’s exceedingly likely that the affected airports will be in predominately blue states.
Testing Democracy
With the shutdown ongoing, Republican Speaker Mike Johnson has set a dangerous precedent by choosing not to swear in Representative-elect Adelita Grijalva from Arizona’s 7th Congressional District. For 36 days, Grijalva has been waiting to join the Chamber, leaving the district without representation in Congress’s lower house.
With that, Grijalva holds the record for the “longest delay in seating a member of Congress following a special election.” Johnson has previously admitted members of his own party within mere hours of winning a Special.
While there has been speculation about the reasons why Johnson has chosen not to swear Grijalva in, the use of her seat as a bargaining chip in the government shutdown only stands to exacerbate the already low trust perception of government institutions.
No Quick Bounce, Either
While the government remains shut, economic growth remains restrained. It might prove difficult to put things back on their feet even once the government does reopen, especially in the eyes of already-pressed consumers.
Per research from Morning Consult, consumer sentiment has been falling off a cliff, reaching its lowest level since Jul. 2024.
In a note, the company said that, “The downward trend was predominately driven by a drop in consumer confidence among those earning less than $50,000 annually; this group is most likely to be impacted by delayed or reduced SNAP benefits amid the ongoing government shutdown.”
This trend might not just affect low-income consumers and government-employees. On TheStreet Pro, Chris Versace has been touching on how the government shutdown could impact consumers as holiday shopping gets ready to tee off. Those implications could affect the broadly consumer-exposed universe, as data shows that all Americans from all backgrounds are still souring on the economy amid the shutdown.
And as we’ve recently debunked, it’s not really the case that half of spending is done by the top 10% households. In other words, any sort of slowdown will have an impact throughout the broader economy.
