Podcast Summary: Big Take – “How the Longest Government Shutdown Is Impacting the Economy”

Date: November 6, 2025
Host: Sarah Holder (Bloomberg)
Guests: Megan Scully (Bloomberg Congress Editor), Gregory Cordy (Bloomberg White House Reporter)

Overview

This episode of Big Take examines the immediate and long-term repercussions of the longest government shutdown in US history, which has extended into its 37th day. The discussion focuses on who is most affected, the ripple effects on the economy, and prospects for resolution. The episode dives deep into the food assistance crisis, air travel delays, stalled government functions, political stalemate, and uncertainty about what happens next—even after a deal is reached.

Key Discussion Points & Insights

Shutdown’s Immediate Impacts

• Food Insecurity Escalates

  • The federal Supplemental Nutrition Assistance Program (SNAP, formerly “food stamps”) has nearly exhausted its funds, affecting tens of millions ([03:29], [04:01]).
  • "As we get into the second month of the shutdown, the benefits well is running dry." — Gregory Cordy ([03:42])
  • Uncertainty about November SNAP funding prompted legal battles, with courts intervening to require the administration to find funds ([04:52]).

• Federal Worker Strain

  • Hundreds of thousands are furloughed or working without pay ([00:46], [05:46]).
  • With no pay, workers are receiving letters from agencies to show landlords or banks, but “Of course, that letter has no legal bearing...it’s essentially an IOU from the federal government.” — Gregory Cordy ([05:46])

• Rising Air Travel Chaos

  • Staffing shortages among air traffic controllers and TSA agents lead to delays and ground stops, with absenteeism increasing as the shutdown wears on ([07:02], [07:34]).
  • “Just last week… the air traffic controllers at Reagan National Airport...did not show up to work, and they had to do a ground stop…” — Megan Scully ([07:02])

Political Dynamics & Stalemate

• Core Disagreement: Affordable Care Act Subsidies

  • Democrats refuse to pass a spending bill without renewed ACA subsidies; Republicans resist, despite rising healthcare premiums and even greater public pressure post-election ([02:44], [10:53]).

• Filibuster Debate and Election Fallout

  • Trump pushes for abolishing the filibuster; Senate Republicans remain cautious ([09:59]).
  • Recent elections swung in Democrats’ favor, amplifying pressure on Congress ([10:53]).
  • Polling shows Republicans get more blame, an historic pattern in shutdown politics ([11:53]).

• Breakdown in Negotiation Culture

  • Unlike previous shutdowns, “...they're not talking to each other at all...we've gotten into a routine where Speaker Johnson has a 10 o’clock press conference. Hakeem Jeffries has one a little while later...” — Megan Scully ([13:07])

Economic Aftermath—Risks & Unknowns

• Short and Long-Term Losses

  • Traditionally, “we lose about $15 billion a week” of economic activity, but most is usually recovered ([14:33]). However, Trump’s threat not to pay furloughed workers generates unprecedented uncertainty.
  • Long-term impacts for federal workers: layoffs, departures (“take the fork and received essentially a buyout for resigning...”), and stalling of various programs ([15:45]).

• Ripple Effects: Millions at Risk

  • 42 million rely on SNAP; 24 million must decide on ACA insurance amid chaos ([16:02]).
  • “It’s a pretty big swath of the US Economy.” — Megan Scully ([16:33])

• Statistical Blind Spots

  • Government agencies are not collecting or sharing timely economic data:
    • “We’ve already missed a month’s worth of price data. We are missing employment data... The Census Bureau is almost entirely shut down.” — Gregory Cordy ([16:48])
  • Some statistics may never be recovered due to parallel cuts to statistical agencies.

Possible Paths to Resolution

• Signs of Softening in the Senate
  • Some moderate Democrats are open to a delayed vote on subsidies in exchange for reopening talks ([10:53]).
• Ongoing Uncertainty
  • Any compromise requires the Senate, House, and Trump’s agreement—a tall order ([17:43]).
  • Even ending the shutdown won’t resolve underlying budget disputes; a new shutdown is possible within months ([18:39]).
  • “...even when we get to the end of this shutdown, the clock is just starting to what might be the next shutdown...” — Megan Scully ([17:43])

Notable Quotes & Memorable Moments

• On the scale and scope of impact:

  • “We are coming up against the Thanksgiving holiday...seeing flight delays...food prices have been a problem for many Americans...uncertainty about the immediate future of SNAP benefits.” — Megan Scully ([01:49])
  • “It’s a perfect storm of issues all coming together with this shutdown.” — Gregory Cordy ([02:09])

• On government worker strain:

  • “That letter has no legal bearing...it's essentially an IOU from the federal government.” — Gregory Cordy ([05:54])

• On the loss of economic measurement:

  • "Not only is this shutdown impacting basic government services, but it's also creating a huge hole in our knowledge of exactly what the state of the economy is." — Gregory Cordy ([16:48])

• On the prospects for compromise:

  • “Compromise is a dirty word in Washington these days.” — Gregory Cordy ([12:37])

• On the future:

  • “We could be going through this all over again in just a month or two.” — Megan Scully ([17:43])

Timestamps for Key Segments

• 00:46: Start of reporting—current status of shutdown, federal workers, food banks
• 01:27: Public impact and polling—How Americans feel the shutdown
• 02:44: Main theme introduced—focus on economic and social impact
• 04:01: Detailed explanation of SNAP funding crisis
• 05:46: Financial hardship for federal workers—evictions, foreclosures risk
• 07:02: Air travel delays caused by absentee federal workers
• 08:01: Government’s warning on worsening air travel chaos
• 09:59: Political analysis post-election—filibuster, power struggles, polling
• 11:53: Polling history—blame falls on Republicans
• 13:07: Chronic lack of negotiation in Congress
• 14:33: Economic losses and discussion of lost activity
• 16:02: Breadth of population affected—SNAP, ACA
• 16:48: Economic data blackout explained
• 17:43: Discussion on timing and likelihood of ending the shutdown
• 18:39: Possibility of future shutdowns

Summary Tone

The conversation remains factual but somber, with reporters offering measured analysis and recurring concern about both immediate pressures and the longer-term institutional and economic consequences. The tone reflects frustration at political gridlock and deep empathy for the millions affected.

Final Thoughts

The longest shutdown in US history has moved well beyond political chess—touching millions of households, throwing essential services into chaos, and casting a shadow over both immediate and future economic prospects. Even a resolution will not mark a return to normalcy, but rather, a pause before renewed budget battles. The episode underscores both the human cost and the systemic risks exacerbated by political dysfunction.