Government Shutdown Continues as Back Pay Dispute Sparks Economic Fallout

Government Shutdown Continues Amid Back Pay Dispute
The 2025 government shutdown has now entered its seventh day, with negotiations stalled over back pay for furloughed workers. As federal agencies remain partially closed, approximately 750,000 employees face unpaid leave, intensifying concerns about financial hardship and government service disruptions.
Stalemate Between Political Parties
Lawmakers remain deadlocked, with Republicans proposing a stopgap funding bill through November 21, which Democrats have rejected. The primary disagreement centers on health care funding, including the extension of Affordable Care Act subsidies and Medicaid reversals. This impasse prolongs the shutdown, causing uncertainty for millions.
Economic and Social Impact
The Congressional Budget Office estimates the shutdown costs nearly $400 million daily, with broader economic effects possible if the stalemate continues. Essential services operate under limited capacity, but the longer this dispute persists, the greater the strain on workers and the economy at large.