Treasury Warns Shutdown Hitting Economy, Officials Reassign Funds to Pay Troops

The Treasury Department issued a formal warning on October 15, 2025 that the government shutdown was measurably slowing economic growth, citing reduced federal spending, delayed contracts, and declining consumer confidence. Separately, Treasury officials used emergency fund transfer authorities to reassign money from lower-priority accounts to ensure active-duty military personnel received pay, averting a full military payroll collapse.