Airspace Cuts & Travel Chaos: Impact ‘Worse Than Expected

by drbyos

A measure of consumer confidence dropped to a three-year low Friday, partially due to shutdown worries, and a Trump adviser said the economic effects were “far ​worse than we expected” as the shutdown continued to ripple across the US economy.

For travelers, US airlines have already canceled hundreds of flights, after an order from the ​Federal Aviation Administration to cut domestic ‌operations took effect Friday morning.

The first cut of 4% became mandatory at 6 a.m. ET Friday at 40 high-traffic airports. Major carriers — from United (UAL) to Delta (DAL) to American Airlines (AAL), and many others — had preemptively announced flight changes late Thursday.

The FAA’s cuts will deepen in the coming days and reach 10% if the shutdown continues.

Cancelled flight are displayed at O’Hare International Airport in Chicago on Nov. 7. (AP Photo/Nam Y. Huh) · ASSOCIATED PRESS

Meanwhile, a federal judge in Rhode Island ordered the Trump administration to immediately cover Supplemental Nutrition Assistance Program (SNAP) benefits for tens of millions of Americans but the Trump administration appealed and the Supreme Court late Friday temporarily halted the initial order.

It was just the latest uncertainty-causing twist for recipients after the Trump administration had previously announced plans to only pay partial benefits for the program, which about 1 in 8 Americans rely on.

On Capitol Hill, the growing economic ripples have increased the pressure on congressional leaders to find a way out of the shutdown — and Friday saw a flurry of proposals and counterproposals but with any sort of breakthrough still elusive.

It led to some signs of optimism with Ed Mills of Raymond James saying Friday “we believe we are at the beginning of the end, but are unlikely to see a resolution pass into law before next week.”

Trump blamed the shutdown as a key “negative” that contributed to GOP losses in Tuesday’s elections, while Democrats celebrated their electoral wins and suggested their stand on the shutdown — especially their push to elevate the healthcare issue — was being appreciated by voters.

Read more: How the government shutdown impacts your money: student loans, Social Security, investments, and more

Here are the latest updates as the impacts of the government shutdown unfold.

LIVE 60 updates

  • Washington DC’s already battered local economy takes another hit from the shutdown

    Table of Contents

    Food pantries across the country have been bracing for an uptick in patrons as the shutdown-related pause to SNAP benefits disrupts many Americans’ access to food. At the Capital Area Food Bank in Washington DC, the need ha been made even more acute ahead of the holidays by the widespread layoffs and furloughs of government employees, many of whom live in the area, the Associated Press reports:

    A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
    A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein) · ASSOCIATED PRESS

    Read more here.

  • Ben Werschkul

    The government shutdown prompts the cancellation of some Veterans Day events

    The Associated Press reports

    Read more here

  • Mentions of ‘government shutdown’ on S&P 500 company earnings calls spike to highest level since 2018

    As airline delays mount and federal workers continue to go without pay, the impacts of the government shutdown are growing. But there’s another indicator of disruption — or at least worries about a disruption: corporate executives are mentioning the shutdown more in their quarterly updates.

    An analysis by FactSet senior earnings analyst John Butters found that between Sept. 15 and Nov. 6, the term “government shutdown” was referenced on 76 earnings calls held by S&P 500 (^GSPC) companies, or 18% of S&P 500 company calls so far this earnings season.

    The only other time the term “government shutdown” was mentioned more on earnings calls in the past 10 years was in the fourth quarter of 2018, during what is now the second-longest shutdown in US history (which the current shutdown surpassed).

    Industrial companies, many of which have ties to federal funding, such as aerospace, defense, and airlines, have been the most likely to cite the government shutdown in their earnings, followed by companies in the Information Technology and Financials sectors.

    What was the sentiment among executives regarding the shutdown? According to Butters, 29 companies said they were seeing little to no impact at this time, while 22 companies said they were factoring the shutdown into their fourth quarter or full-year guidance.

    With 91% of S&P 500 companies having reported earnings so far this quarter, the term
    With 91% of S&P 500 companies having reported earnings so far this quarter, the term “government shutdown” hasn’t been this popular in earnings calls since 2018. (Chart: FactSet) · FactSet
  • Senators prepare to hole up in Washington for the weekend — where at least they are talking

    Yahoo Finance’s Ben Werschkul on the latest back and forth on Capitol Hill

    Read more here

  • Ben Werschkul

    Trump adviser says the shutdown’s effect ‘far ​worse than we expected’ but that much of the pain could eventually be reversed

    White House economic ‌adviser Kevin Hassett offered a dire warning Friday morning in an interview on the Fox Business Network, saying that the economic impact of the US government shutdown is “far ​worse than we expected.”

    He suggested that the shutdown could cut economic growth for the fourth quarter in half (from 3% to 1.5%) and lead to a permanent exodus from the federal government’s workforce.

    He added that pockets of the economy, from travel and leisure to construction, “are really hurting right now.”

    But moments later, he spoke to reporters at the White House and offered more tempered comments when he noted that whenever the government reopens, “there should be a big bounce-back right away” that could see a GDP rebound.

    Indeed, much of the economic pain seen in past shutdowns has later been made up when a reopened government catches up on spending, even as longer shutdowns have led to more permanent cuts.

    The Congressional Budget Office previously studied the 35-day shutdown in 2018/2019 and found that it cost the US economy about $11 billion at the time. But much of that loss was later made up, even as $3 billion in cuts were permanent.

  • US consumer sentiment plunges as Americans grow worried about shutdown’s impacts

    US consumers grew more pessimistic about the economy, with a measure of consumer confidence released Friday showing sentiment dropped to a three-year low. Households became more concerned about the effects of the ongoing government shutdown on the US economy and their finances.

    Yahoo Finance’s Emma Ockerman reports:

    Read more here.

    University of Michigan's preliminary consumer sentiment survey showed confidence in the US economy fell in November.
    University of Michigan’s preliminary consumer sentiment survey showed confidence in the US economy fell in November.
  • Federal judge orders Trump administration to make full SNAP payments — starting today

    A federal judge in Rhode Island announced Thursday he was ordering the Trump administration to immediately cover food stamp benefits for tens of millions of Americans in November.

    But it may take at least a few days before the benefits are restored.

    CNN reports

    Read more here

  • Flight cancellations accelerate as airlines comply with the government’s air traffic limits

    US airlines have already canceled hundreds of flights as the Federal Aviation Administration ordered airlines to reduce domestic flight operations by 4% at 40 high-traffic airports starting at 6 a.m. ET on Friday.

    The cuts will increase next week to reach 10%.

    The Associated Press reports on the latest for travelers:

    Read more here.

  • Ben Werschkul

    Immediate reaction suggests Tuesday’s election results may delay any shutdown deal

    President Trump appeared with Senate Republicans on Wednesday and rhetorically asked if this week’s election results could herald a quicker end to the shutdown.

    He then immediately answered his own question saying “I don’t think so.”

    It may be one of the only things that the president and Democrats agree on with new signs emerging on Capitol Hill throughout the day Wednesday that the election result isn’t pushing the sides towards compromise and could instead be pushing them further apart.

    CNN spoke to lawmakers and found that the lesson some progressives like Senator Bernie Sanders have taken from the result is that outsized Democratic victories were a reason to keep fighting.

    USA today also took a look at the issue and found similar political winds in evidence.

  • Ben Werschkul

    From Anchorage to Teterboro: These 40 airports are set to be impacted by the coming 10% air traffic cut

    Transportation Secretary Sean Duffy announced plans Wednesday to cut air traffic capacity by 10% at 40 “high-volume” airports in the face of air traffic controller shortages.

    These cuts are set to impact some of the nation’s busiest airports. The cuts are expected to begin this Friday with full implementation by next week.

    The full tally of impacted airports wasn’t immediately released, but CBS News on Thursday obtained a full (but apparently not final) list, which the outlet warned still could change in the days ahead as the government readies its final order.

    Here’s the list, organized alphabetically by airport code.

    Read more here.

  • Ben Werschkul

    Trump weighs in election results saying ‘the shutdown was a big factor, negative for the Republicans’

    Tuesday’s election results saw Democratic wins across the board and President Trump didn’t mince words Wednesday morning when he said “the shutdown was a big factor, negative for the Republicans.”

    But whether the results from voters — which saw Democratic gains from New York to Virginia to California Tuesday night — could provide an opening towards ending the now 36-day stoppage wasn’t immediately clear with Trump suggesting his next moves will not be in the direction of bipartisan compromise.

    “We can’t be extorted,” the president added of Democrats during the breakfast event with Republican lawmakers, reiterating his view that “it’s time for Republicans to do what they have to do and terminate the filibuster.”

    President Donald Trump speaks during a breakfast with Senate and House Republicans in the State Dining Room of the White House, Wednesday, Nov. 5, 2025, in Washington. (AP Photo/Evan Vucci)
    President Donald Trump speaks during a breakfast with Republicanlawmakers in the State Dining Room of the White House on Wednesday. (AP Photo/Evan Vucci) · ASSOCIATED PRESS

    Top Republicans in attendance — from Senate Majority Leader John Thune on down — have ruled out ending the filibuster previously but Trump persisted saying of Democrats “I don’t think they are really getting the blame that they should” and that efforts to bring them across the aisle aren’t working.

    “It’s time to have a really good talk,” Trump added as he ushered reporters out of the State Dining Room of the White House “we must get the government back open soon, and really immediately.”

  • Brett LoGiurato

    White House: US to send SNAP funds despite Trump post

    From Bloomberg:

    Read more here.

  • Ben Werschkul

    Trump administration says the shutdown may force the US to close some air space next week

    Transportation Secretary Sean Duffy warned on Tuesday that if the shutdown continues for another week it could lead to chaos” as well as a the potential need to close some of the airspace due to staffing issues..

    Reuters reports

    Read more here

  • Ben Werschkul

    TSA workers are riding out this shutdown better than in 2019. Better pay is part of the reason why.

    Transportation Security Administration (TSA) officials haven’t been paid for weeks but have seen less disruptions this time around than during the last shutdown in 2018.

    Air traffic controllers are more in focus this time around and part of the reason for that switch — Reuters reports — is increased pay and job security that TSA officials have enjoyed in recent years.

    Read more here

  • Ben Werschkul

    Talks to end the shutdown appear to be making progress

    Multiple signs on Capitol Hill early this week pointed to the possibility that bipartisan talks toward an end to the shutdown are making progress.

    There is (very cautious) optimism that at least a short-term end to the shutdown could be coming into focus as lawmakers look toward a recess that is scheduled to start at the end of the week.

    Reuters reports on a change of tone:

    Semafor adds that talks are getting into details — most pressingly, how long to potentially keep the government open for this time:

  • Government shutdown has affected more than 3 million airline passengers

    An airline industry group said Monday that the government shutdown which began Oct. 1 has affected some 3.2 million airline passengers, in the form of delays and cancellations that can be traced back to a shortage of air traffic controllers, Reuters reports.

    Air traffic controllers are federal employees who are expected to report to work during the shutdown even though they aren’t being paid. But many have started calling in sick, hence the shortage.

    Also on Monday, Transportation Secretary Sean Duffy said the Trump administration would close U.S. aviation if it looked like the shutdown was creating conditions making it too dangerous to travel.

    Read more here.

  • Ben Werschkul

    Trump administration says partial food aid benefits will be paid in November

    The Trump administration said Monday that it will partially fund the Supplemental Nutrition Assistance Program (SNAP) in response to two judges who issued rulings requiring it to keep the nation’s largest food aid program running.

    The Associated Press reports on how the uncertainty for the most vulnerable Americans could continue.

    Read more here

  • Ben Werschkul

    Halloween helped make this past weekend was the worst one yet at airports since the shutdown began

    Between Friday morning and Sunday night, there were 98 “staffing trigger” reports at FAA facilities, a new CNN analysis of Federal Aviation Administration operations finds.

    This marks the worst weekend for air traffic control staffing shortages since the shutdown began .

    More from CNN

    Read more here

  • Ben Werschkul

    Trump administration faces a Monday deadline to outline its plans for SNAP

    Days of legal wrangling over SNAP, the nation’s biggest food aid program, could get some clarity soon. The Trump administration faces a Monday deadline to tell two federal judges whether it will comply with court orders to fund the program.

    The Associated Press reports

    Read more here

  • Weekend flight delays rise at O’Hare, Newark and other airports amid air traffic controller shortages

    As the government shutdown drags on, major US airports were seeing an uptick in flight delays on Sunday amid the ongoing shortage of air traffic controllers, Reuters reported.

    Air traffic controllers are among the federal employees expected to continue to work without pay during the shutdown, but many have called in sick, causing a ripple effect at busy airports like Newark. New York City’s Emergency Management office posted to social media that travelers flying to or from the New York area should check flight status before heading to the airport.

    NEWARK, NEW JERSEY, UNITED STATES - AUGUST 28: A view of Newark Liberty Airport as ground stops issued at Newark Liberty International Airport and Teterboro Airport on August 28, 2025. The ground stops were issued just before 11 a.m. at both airports due to an equipment issue.
    A view of Newark Liberty Airport (Photo by Kyle Mazza/Anadolu via Getty Images) · Anadolu via Getty Images

    Read more here.

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