Treasury warns shutdown will hit the economy; officials reassign funds to pay troops

The federal funding lapse took effect at 11:59 p.m. on Sept. 30, 2025, and the shutdown began Oct. 1, 2025.

Treasury Secretary Scott Bessent warned the shutdown was "starting to affect the real economy."

EEY-Parthenon estimated a weekly GDP hit of about $7 billion for each week of shutdown.

A separate White House memo, reported by other outlets, estimated an economic loss as high as $15 billion per week.

The Pentagon repurposed about $8 billion in unspent funds to cover the Oct. 15 military payroll.

News reports placed furloughed federal workers at roughly 750,000 during the shutdown.

Thousands of air traffic controllers continued to work while unpaid according to press reporting.

Unions have filed legal actions claiming that compelling essential workers to work unpaid raises Antideficiency Act and constitutional issues; legal outcomes remain unresolved.