Second Week of Shutdown: America Slowly Paralyzed, Congress Still at loggerheads
The United States government has entered its second week of a government shutdown with no sign of resolution, after Congress failed to reach a budget agreement for fiscal year 2026. The impact of this political deadlock is beginning to be felt across various sectors, from public services and aviation to the national economy.
According to reports by Reuters and the Associated Press, the Internal Revenue Service (IRS) is one of the hardest-hit agencies, with approximately 34,000 employees, or nearly half the total workforce, having to furlough (leave without pay). Critical operations such as call center services and IT systems have experienced significant declines, while only 53% of employees are still working to maintain basic functions.
On Capitol Hill, the Senate remains sharply divided over the content of the budget bill. Democrats are pushing for the inclusion of healthcare subsidies in the Affordable Care Act, while Republicans are strongly opposed, arguing it would burden the nation's fiscal resources. This deadlock has prevented the funding bill from passing, prolonging the shutdown of most federal government agencies.
Meanwhile, the transportation and aviation sectors are also beginning to feel the strain. Several major airports have reported air traffic controller (ATC) shortages, although no major disruptions have occurred. In some areas, pilots are even using emergency communication frequencies to coordinate takeoffs and landings due to the lack of control tower staff.
Economically, the research firm Politico Economics estimates that a continued shutdown could shave up to USD 15 billion off Gross Domestic Product (GDP) each week. This impact stems primarily from lost consumer spending, delayed government payments, and slowdowns in public sector contracts. Economists warn that if the shutdown lasts more than three weeks, the domino effect on the labor market and household consumption will be even greater.
Although open negotiations in Congress have yet to yield results, informal talks between members of both parties have reportedly begun behind closed doors. Internal sources indicate efforts are underway to find a limited compromise so that some vital institutions can resume operations before the end of October.
In financial markets, this situation has created high volatility in the US dollar and bond markets. Global investors still view the shutdown as temporary, but if the political deadlock continues, confidence in America's fiscal stability could be shaken.
Source: Newsmaker.id
