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How the shutdown is hitting federal workers and services across the US

Thousands of workers are being laid off and hundreds of thousands furloughed as the government shutdown stretches beyond its first week.

October 11, 2025 / 12:07 IST
Alongside layoffs, more than 600,000 employees are furloughed nationwide.

The Trump administration in the US followed through on its threat to cut jobs during the shutdown, notifying more than 4,000 employees across seven agencies. The hardest hit include US Treasury, Health and Human Services, Education, Housing and Urban Development, Commerce, Energy and Homeland Security. Lawsuits from federal unions are already challenging the legality of the firings, a first in shutdown history, the New York Times reported.

Furloughs disrupt daily operations

Alongside layoffs, more than 600,000 employees are furloughed nationwide. The Environmental Protection Agency sidelined nearly 89 percent of its workforce, halting new permits and most research. The Education Department furloughed 87 percent of staff, slowing grant programmes and civil rights investigations. Even critical agencies like Defence have put 45 percent of their civilian workforce on hold, delaying contracts though military operations continue.

Essential services continue—without pay

Certain programmes remain active. Social Security benefits and Medicare payments are still flowing, though back-office support is curtailed. Air traffic controllers, border agents, and federal law enforcement continue working but without pay cheques. At Homeland Security, more than three-quarters of the staff are working unpaid, from immigration officers to TSA screeners.

Health and safety concerns grow

The shutdown’s strain extends into public health. While outbreak response and the Vaccines for Children programme remain operational, routine FDA inspections and CDC public communications have stopped. New patients are being turned away from the NIH research hospital, and approvals of certain drugs and medical devices are paused. These gaps have raised alarms about risks to food safety, medical oversight and readiness for emergencies.

Uneven impact across departments

Some agencies are able to function almost normally. The Veterans Affairs Department kept 90 percent of its staff working, protecting health care and crisis line services. The Treasury Department is operating at 97 percent capacity for now, though regulatory work is suspended. By contrast, the Labor Department furloughed three-quarters of its employees, delaying critical data like the monthly jobs report.

A political standoff with no end in sight

Shutdowns in the past have often lasted only a few days, but this impasse is more entrenched. President Trump has signalled he may use the standoff to push for permanent programme cuts and further workforce reductions, deepening fears for federal workers and the services they provide. Until Congress and the White House strike a funding deal, millions of Americans will feel the effects in disrupted services, delayed programmes and growing uncertainty.

Moneycontrol World Desk
first published: Oct 11, 2025 12:06 pm

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