Government Shutdown Enters 11th Day, Triggering Mass Federal Layoffs

Government Shutdown Enters 11th Day, Triggering Mass Federal Layoffs

Washington, D.C., October 11, 2025 — The U.S. federal government shutdown has entered its 11th day, with over 4,200 federal employees laid off as agencies begin to exhaust reserve funding. The deadlock in Congress over budget allocations has deepened disruptions across federal functions and raised concerns over economic and national security impacts.

Background: Shutdown Causes and Furloughs

The shutdown commenced at midnight on October 1, 2025, after Congress failed to pass a continuing resolution to fund government operations for fiscal year 2026. The standoff centers on disputes over discretionary spending levels, border security, and health-care subsidies.

Historically during shutdowns, many federal workers are furloughed, but in this instance, the administration has begun issuing Reduction in Force (RIF) notices—effectively permanent terminations—across multiple agencies. OMB Director Russ Vought publicly announced that layoffs have started, distinguishing them from prior furlough strategies.

OPM (Office of Personnel Management) has released guidance on managing federal agency operations during lapses in appropriations, including rules around “excepted” and “furloughed” employees and RIF procedures.

Layoffs, Agency Impacts, and Aviation Strain

According to Reuters, the layoffs are underway in agencies including Treasury, Health and Human Services (HHS), Education, Commerce, and Homeland Security (particularly in cybersecurity) — although full totals remain fluid. The White House has defended the cuts, blaming Democrats for resisting fiscal restraint. Meanwhile, labor unions are pushing back legally, contending the mass terminations violate existing statutes and precedents.

At the Federal Aviation Administration (FAA), staffing shortfalls and maintenance delays have been reported at control centers and major airports in cities such as Nashville, Chicago, Dallas, and Philadelphia. Some towers have been understaffed or had to reduce operations.
One FAA engineer told Wired that although the system remains safe for now, the stress on controllers is mounting and repair delays may worsen. Another longtime controller noted that the profession is “used as political pawns” when funding becomes discretionary.

Despite these strains, the International Air Transport Association (IATA) has reported that major commercial flight disruptions remain limited to date, noting no “significant” system-wide breakdowns yet. Still, analysts warn the risk grows daily as absences and delays accumulate.

Economic Risks and Security Strain

Economists estimate each week of a shutdown can reduce U.S. GDP growth by roughly 0.1 %, with cumulative effects mounting if the impasse continues. Some agencies have reported that roughly 900,000 employees are furloughed across the federal workforce, while another 700,000 remain working (or in excepted status) without pay.

From a national security standpoint, defense analysts caution that while active-duty forces remain funded, the logistics, procurement, and modernization mechanisms depend heavily on civilian oversight and contracting—which face delays under shutdown conditions. According to observers, extended disruption could slow readiness and erode deterrent capability.

Union Pushback, Legal Challenges, and Political Standoff

Labor groups such as the American Federation of Government Employees (AFGE) and AFSCME have filed lawsuits against the OMB and OPM, alleging that mass layoffs during a funding lapse violate the Antideficiency Act and other legal protections. The unions argue that targeting federal employees as political leverage is unlawful.

In contrast, administration officials maintain that RIFs are legal and strategic, meant to cut programs deemed politically undesirable. White House guidance has signaled that back pay may not be guaranteed unless Congress explicitly appropriates funds—marking a departure from past shutdown precedents.

Outlook: What Comes Next

Congress is expected to reconvene funding negotiations Monday, with proposals circulating for a short-term “bridge” appropriation to restart agency operations while long-term talks continue. Analysts caution, however, that without meaningful compromise, the shutdown may stretch late into October, making it among the longest on record.

In the interim, thousands of federal employees face income uncertainty, essential services are strained, and the risk of compounded economic and security effects grows daily. If the standoff drags on, repair backlogs, procurement delays, and readiness gaps may become lasting legacies of the political impasse.

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