A Federal Government Shutdown Is Underway: Here's What Happens Now

As of October 1, 2025, the federal government has entered a shutdown due to a deadlock in Congress over funding legislation.

 

Essential services such as air traffic control and law enforcement will continue, but many federal employees face furloughs.

 

The Federal Aviation Administration (FAA) will furlough over 11,000 employees, approximately one-quarter of its workforce.

 

Despite this, more than 13,000 air traffic controllers and around 50,000 Transportation Security Administration (TSA) employees will work without pay.

 

Airline groups warn that the shutdown could harm aviation efficiency and inconvenience travelers.

 

The Consumer Financial Protection Bureau (CFPB) will continue operations, as its funding is not tied to congressional appropriations.

 

However, the agency has faced significant reductions and legal steps to reduce staffing under the current administration.

 

In the education sector, the Department of Education will furlough 87% of its staff.

 

While Pell Grants and federal student loans will continue in the short term, civil rights investigations will halt due to staffing shortages.

 

Federal grants to schools made during the summer are expected to minimize disruption, but new grant activity and advisory roles will pause.

 

The National Park Service has not yet announced whether it will close its more than 400 sites across the U.S. to visitors.

 

During the 2018–2019 shutdown, many national parks, including Yellowstone and Yosemite, stayed open with limited staffing, leading to vandalism and other issues.

 

In Michigan, the shutdown could disrupt operations at national parks such as Sleeping Bear Dunes and Isle Royale.

 

Local businesses that rely on tourism may face economic hardship due to decreased visitor spending.

 

The Congressional Budget Office estimates that up to 750,000 federal workers could be furloughed daily, with a total daily cost of their compensation at roughly $400 million.

 

Although furloughed employees are ensured back pay once operations resume, delayed paychecks could harm households and strain local economies.

 

As the shutdown continues, its duration and the willingness of lawmakers to negotiate will determine the full extent of its impact on federal operations and services.