With the Oct. 1 funding deadline looming, lawmakers have yet to reach a deal and a federal government shutdown is a real risk that could begin next Wednesday if appropriations aren’t passed. CNN explains which services typically continue and which could be curtailed.
Why it matters: a shutdown can slow GDP growth through delayed federal spending, furloughed workers pulling back on consumption and disruption to permit and loan processes for businesses. Historically the economic hit is uneven, but in a softer macro environment a shutdown raises downside risk to growth and corporate revenue near‑term.
Political leverage and executive moves have raised the stakes: the Office of Management and Budget has circulated a memo urging agencies to consider layoffs and other contingency steps — language that signals this shutdown could look different from past episodes. PBS/PolitiFact coverage outlines the memo and possible consequences.
Parallel trade shocks: the administration’s new tariffs — including levies on heavy trucks, furniture and a proposed 100% duty on some branded pharmaceuticals unless firms build U.S. plants — add policy uncertainty for supply chains and sectors. Companies and markets will be watching how exemptions and implementation details soften or amplify pass‑through to prices and profits.
