North Platte, Neb. — The federal government shutdown has entered its third week with no clear path toward reopening, and economists warn the impact is now rippling through every level of the economy — from stalled infrastructure projects to small businesses delaying hiring.
The standoff began October 1 after Congress failed to reach agreement on a spending package. Since then, federal agencies have furloughed tens of thousands of employees, and major projects have been put on hold nationwide.
In the latest development, the Trump administration froze another $11 billion in Army Corps of Engineers infrastructure funding, including bridge and flood-control projects, as negotiations remain stalled. The Treasury Department estimates the shutdown is now costing the U.S. economy as much as $15 billion per week.
A federal judge in California on Friday temporarily blocked the administration from proceeding with planned layoffs of more than 4,100 federal employees, ruling the firings cannot move forward while the government remains unfunded.
The National Nuclear Security Administration has furloughed about 80 percent of its staff, while the IRS reports nearly half of its workforce sidelined. The FAA is also dealing with staff shortages that have contributed to growing flight delays across the country.
For Nebraskans, the effects are starting to show locally. Federal workers and contractors in the state have gone without paychecks for nearly three weeks, while infrastructure projects relying on federal dollars face uncertainty. Small businesses that depend on government contracts are pausing new hires, according to an Axios report Monday.
Travelers are also seeing more flight delays, and some grant-funded programs in education and public safety are in limbo as state and local governments wait on stalled funding streams.
The White House announced it will use unspent defense funds to keep active-duty military pay flowing, but civilian workers across multiple departments remain without pay.
Meanwhile, Senate negotiations have repeatedly failed, with the latest funding proposal falling short late last week. Lawmakers remain at odds over the scope of domestic spending and healthcare provisions tied to the budget.
If the shutdown continues into November, analysts warn the economic damage could rival or surpass the record 35-day shutdown of 2018-19.