US government shutdown update: Longest US shutdown ends, but the massive damage is here to stay | 5 points

There was a sense of relief as the 43-day shutdown in the US, the longest in America’s history, ended on Wednesday (US time). However, the damage from the shutdown will persist for months. And could even stretch to another shutdown, which is inevitable, given the bipartisan acrimony. That one is just round the corner—January 30.

The impact is irreparable, considering the hit on air travel, missing jobs and inflation data, billions lost in economic activity, and more importantly the faith on the Trump administration over food aid.

The longest shutdown in US history was finally over with President Donald Trump signing a funding bill to reopen the government.

The House approved the bill, with nearly every Republican and a handful of Democrats voting for it, according to CNN. Derrick Van Orden, a Wisconsin Republican, rode his motorcycle for over 1,600 km to reach the House and cast his vote before it was sent to Trump, reported the BBC.

Though Trump’s signing brought relief for millions of Americans, the damage to the economy and the faith in the administration would be permanent. Even full flight operations and food aid would only resume slowly.

Here are the five reasons why it could take months to emerge from the damages, which could jolly well be the time for the next possible shutdown.

1. AIR TRAVEL IN US WILL NEED MONTHS TO RECOVER

The Federal Aviation Administration, through an emergency order, directed airlines to cut flights by up to 10% across 40 airports. Air traffic controllers went missing from their job as the shutdown led to freezing of salaries.

Those who have worked during the shutdown won’t be receiving the dues immediately, and some staffers might not choose to return to duty right away. According to reports, it took over two months for air traffic controllers to get their salary back log cleared during the shutdown in 2019.

According to a November 11 CNN report, though the shutdown might end, it would “leave air travel in a chokehold for months, and possibly years, to come”.

The report said some air traffic controllers might never return to their jobs. They were either quitting or trying to switch to jobs that won’t be held hostage by government shutdowns.

Also, several airlines have sent their planes for maintenance due to the unending shutdown, getting those planes back in the air would need time.

It would need time at least till the Thanksgiving Holidays (November 27) for air travel operations to return to near normal.

2. OCTOBER JOBS, INFLATION DATA WON’T BE RELEASED

While the impasse could cause lasting damage to the US government’s data collection, a White House official said that the shutdown may prevent the release of several important data and economic reports from October 2025.

Slamming the Democrats for the shutdown, White House press secretary Karoline Leavitt said that it has permanently damaged the Federal Statistical system, adding that “the October CPI and jobs reports likely never being released”, reported American broadcaster CNBC.

“All of that economic data released will be permanently impaired, leaving our policymakers at the Fed, flying blind at a critical period,” Leavitt said.

Data from the Labor Department’s Bureau of Labor Statistics, including the monthly nonfarm payrolls report and consumer price index, along with retail sales, trade figures, and measures of consumer spending and income, have all been affected.

Wall Street has reportedly grown anxious over the delayed release of key economic indicators as the government shutdown stretched past six weeks (the longest in US history), according to the CNBC report.

3. RESTARTING US ECONOMY WON’T BE PLAIN SIMPLE

Through the shutdown, thousands of planes that would have flown tens of thousands of passengers didn’t take off. Scores of restaurants saw a dip in footfall. Those damages can’t be repaired. An estimated $55 billion was shaved off the US economy.

The economic hit from the shutdown will be big. It could lower fourth-quarter GDP numbers by up to 2 percentage points, according to press secretary Karoline Leavitt.

“Short-lived shutdowns are usually invisible in the data, but this one will leave a lasting mark,” Gregory Daco, chief economist at accounting giant EY told the Associated Press. Daco said the impact would be seen “both because of its record length and the growing disruptions to welfare programmes and travel”.

The shutdown froze billions in federal spending, hurting contractors, small businesses, farmers, and tourism sectors through cancelled grants, loans, and travel. The disruption in supply chain is likely to last for quarters, according to experts. Therefore, taking back economic activities to pre-shutdown levels would take months.

4. BACK PAY PROCESSING COULD TAKE MONTHS

The shutdown hit 1.4 million employees, who received only partial pay on October 10, and missed the full paycheck of October 24, according to a CBS News report.

Employees even had to resort to bank loans to cover for expenses and mortgages.

After the funding bill was passed, the federal workers, both furloughed employees and those required to work without pay, are entitled to the back pay.

Though back pay is mandated by law, the sheer volume is likely to overwhelm payroll systems, potentially delaying full compensation into early 2026, according to experts.

5. FAITH IN GOVT SHAKEN, REHIRING WON’T BE EASY

Though the economy will bounce back, the lost faith in the system might not.

“The shutdown is ending. The damage to food stamps may not be. Trump’s halt to funds has undermined faith in the programme and left many to question whether the government will protect its citizens from harm,” Tony Romm, economic policy correspondent at The New York Times, wrote on X.

Like the air traffic controllers who were switching to jobs that aren’t reliant on government funds, this shutdown has also brought about a loss of faith in the Trump administration.

Though the longest shutdown in US history might seem to have ended, its impact would likely continue to the next probable shutdown. The date for that is January 30, because the deal negotiated over the weekend extends funding for the federal government only till then.

– Ends

Tune In