Federal Government Shutdown Enters Second Month as Food Aid Crisis Looms

Trump says Senate should scrap the filibuster to end the shutdown

Historic impasse over healthcare subsidies leaves millions without pay as SNAP benefits face November cutoff

October 31, 2025

WASHINGTON — The United States federal government shutdown, now in its 31st day, has become the second-longest in American history, with no end in sight as partisan gridlock over healthcare subsidies and spending levels continues to paralyze Congress.

The funding lapse, which began at 12:01 a.m. EDT on October 1, 2025, has resulted in the furlough of approximately 900,000 federal employees while another 2 million continue working without pay. The shutdown occurred after the Senate repeatedly failed to pass a House-approved continuing resolution that would have funded the government through November 21.

The Healthcare Deadlock

At the heart of the impasse is a fundamental disagreement over healthcare policy. Republicans passed a "clean" continuing resolution in the House on September 19 that would maintain current funding levels through November 21. However, Senate Democrats have blocked the measure 14 times, demanding the inclusion of provisions that Republicans refuse to accept.

Democrats are insisting on an extension of enhanced Affordable Care Act premium tax credits set to expire December 31, 2025, reversal of Medicaid cuts enacted in earlier legislation, and assurances that previously appropriated spending will not be rescinded by the White House. Republican leaders characterize the Democratic demands as a "$1.5 trillion ransom note" that includes what they claim amounts to healthcare for undocumented immigrants—a charge Democrats dispute.

"We are not going to support a partisan Republican spending bill that continues to gut the health care of everyday Americans," House Democratic Leader Hakeem Jeffries said in September.

Speaker Mike Johnson has kept the House out of session since passing the continuing resolution, arguing it would be "futile" to pass another measure that would "meet the exact same fate with Chuck Schumer." As the November 21 deadline in the existing House bill approaches, Johnson has indicated willingness to let that date pass rather than recall the chamber.

Food Aid Crisis Deepens

The shutdown's most severe humanitarian impact is now materializing with the Supplemental Nutrition Assistance Program (SNAP). The U.S. Department of Agriculture confirmed on October 27 that approximately 42 million Americans will not receive their November SNAP benefits, with officials stating "the well has run dry."

Acting SNAP administrator Ronald Ward warned state agencies in mid-October that "if the current lapse in appropriations continues, there will be insufficient funds to pay full November SNAP benefits." The USDA has directed states to hold back transmission of November issuance files to Electronic Benefit Transfer vendors, effectively freezing payments.

Multiple states have issued alerts to recipients. Pennsylvania's Department of Human Services posted a blunt notice: "Because Republicans in Washington D.C., failed to pass a federal budget, causing the federal government shutdown, November 2025 SNAP benefits cannot be paid." Similar warnings came from Texas, New York, Illinois, Minnesota, West Virginia, Arizona, and Missouri.

Agriculture Secretary Brooke Rollins told reporters the administration has rejected using more than $5 billion in available contingency funds to continue SNAP benefits into November. While the Center on Budget and Policy Priorities estimates that approximately $5 billion in contingency funding remains available, this would fall short of the roughly $8 billion needed to fully fund one month of benefits nationwide.

On October 28, 25 states filed a lawsuit in federal court in Massachusetts seeking to compel the Agriculture Department to use contingency funds to ensure benefits continue flowing. Arizona Governor Katie Hobbs announced a temporary state program called "Food Bucks Now" to provide short-term assistance to affected families.

Federal Workforce in Limbo

The shutdown has created severe hardship for federal workers, who began missing their first full paychecks in late October. The impact varies by agency and payroll system, with some workers receiving partial checks on October 10, 14, or 16, while full paychecks were missed starting October 24.

Adding to the uncertainty, the Office of Management and Budget quietly removed references to the Government Employee Fair Treatment Act of 2019 from its shutdown guidance on October 3. The 2019 law, passed during the previous Trump administration's 35-day shutdown, was understood to guarantee backpay for both furloughed and excepted employees. OMB's revised guidance now states only that excepted employees working without pay are guaranteed backpay, raising questions about whether furloughed workers will be compensated once the shutdown ends.

"I interpret that last clause as triggering when the payment will go out — not if the payment will go out," said Kevin Owen, a partner at Gilbert Employment Law, disputing OMB's new interpretation.

Layoffs During Shutdown Spark Legal Battle

The Trump administration has used the shutdown to conduct what it describes as necessary workforce reductions, issuing more than 4,100 Reduction in Force (RIF) notices on October 10. The Treasury Department had the most layoffs with 1,446 employees affected, followed by approximately 1,100 at the Department of Health and Human Services, primarily at the Centers for Disease Control and Prevention.

U.S. District Judge Susan Illston in San Francisco issued a temporary restraining order on October 15 halting the layoffs, ruling they appeared to be politically motivated and were being carried out without proper consideration. On October 28, Illston extended her order indefinitely, preventing the administration from implementing the layoffs during the shutdown.

"The constant threat of being fired, which has persisted for months, has caused me tremendous physical and mental distress," wrote Mayra Medrano, a Commerce Department program analyst, in testimony filed with the court.

Justice Department attorney Michael Velchik argued that the executive branch can conduct RIFs during appropriations lapses to achieve the president's policy priorities, asserting "If you don't have money coming in, you should be looking for ways to cut costs." However, plaintiffs' attorney Danielle Leonard countered that a lapse in appropriations does not eliminate statutory authority and that the government violated federal law by ordering employees to work on RIFs during the shutdown.

Military Pay and Controversial Funding Maneuvers

Active-duty military personnel narrowly avoided missing their October 15 paycheck when the Trump administration announced it would reallocate approximately $8 billion in unused Pentagon research and development funds to cover one pay period. However, officials acknowledged insufficient funds remain for the next payroll at the end of October.

On October 24, the Pentagon announced it would accept a private $130 million donation to help pay military personnel, raising ethical concerns and questions about potential violations of the Antideficiency Act, which bars federal agencies from spending funds not appropriated by Congress.

FBI Director Kash Patel announced October 15 that the administration found a way to continue paying FBI agents during the shutdown, though he did not specify the funding source.

Federal Courts Operate Under Strain

The federal judiciary exhausted its non-appropriated funding on October 17 and now operates under the constraints of the Antideficiency Act, which permits only certain excepted work. Courts across the country are implementing varying responses to maintain operations.

The Supreme Court closed its doors to the public due to lack of funding, though it continues processing cases and filings. Multiple district courts, including those in California, Arizona, Alaska, Connecticut, Rhode Island, and Alabama, have implemented four-day workweeks or Friday closures to conserve resources.

Starting October 20, federal courts no longer have funding to sustain full paid operations, potentially causing delays in criminal trials, civil case backlogs, and furloughs of court staff. Essential judiciary employees such as law clerks are required to work without pay. Senate staffers learned October 18 they will not receive paychecks for the duration of the shutdown.

Congressional Pay Continues

While millions of federal workers go without paychecks, members of Congress continue to receive their salaries as mandated by Article I, Section 6 of the Constitution and protected by the 27th Amendment. Most members earn $174,000 annually, with leadership positions receiving up to $223,500.

This has prompted dozens of lawmakers to request their paychecks be withheld or to pledge to donate their salaries during the shutdown. However, they cannot legally cancel their pay entirely and must either request delayed disbursement or donate received funds.

"It's wrong that the President and Members of Congress get paid during a government shutdown when our military and public servants don't," said Senator Andy Kim (D-NJ), one of many lawmakers refusing their pay.

Economic Impact

The Congressional Budget Office estimates the shutdown is delaying tens of billions of dollars in federal spending and temporarily slowing growth. Real GDP growth in the fourth quarter of 2025 will be 1 to 2 percentage points lower than it otherwise would be, according to CBO analysis.

If the shutdown lasts through late November, federal outlays could be $74 billion lower, primarily due to delayed pay for approximately 650,000 furloughed federal employees, paused contracts, and the potential lapse in SNAP benefits. While most economic losses would be reversed once funding resumes, between $7 billion and $14 billion in output would not be recovered, CBO estimates.

Services Disrupted

Beyond SNAP, numerous federal services and programs face disruption:

National parks: Operating at limited capacity or closed entirely, with minimal staffing for emergency services
Smithsonian museums: Closed to the public since early October
Small Business Administration: Not accepting, reviewing, or approving new business loans
Federal Housing Administration: Has stopped approving housing loan applications
Immigration courts: Non-detained docket cases are being rescheduled
WIC program: The Special Supplemental Nutrition Program for Women, Infants and Children is operating on temporary emergency funding
Head Start programs: Beginning to close as funding runs out on a rolling basis

Essential services including Medicare, Medicaid, Social Security payments, air traffic control, TSA screening, and border security continue, though many operate with reduced staffing.

No Clear Path Forward

With November 21 approaching—the date through which the House's continuing resolution would have funded the government—lawmakers have made little progress toward compromise. Senate Majority Leader John Thune noted October 29 that talks among members aimed at ending the shutdown have "ticked up significantly," but no concrete proposals have emerged.

The White House has indicated it is using the shutdown to advance its priorities, with internal OMB talking points obtained by CNN revealing plans to "reorient" federal funding and withhold funds to Democratic-stronghold projects.

Democrats maintain they will not relent without healthcare protections for the 24 million Americans who rely on ACA marketplace subsidies. Republicans insist Democrats are manufacturing a crisis over healthcare to extract concessions on what they characterize as excessive spending.

As the impasse continues, the humanitarian and economic costs mount daily. If the shutdown extends past November 1 without resolution on SNAP funding, it would mark an unprecedented disruption to the nation's largest food assistance program at a scale not seen since the program's creation in 1964.

The shutdown is now just four days shy of matching the 35-day record set during the 2018-2019 funding lapse, also during the Trump administration. With Congress adjourned for the long weekend and no negotiations scheduled, millions of Americans face the prospect of November without federal paychecks or food assistance.

SIDEBAR: Banks Step In With Shutdown Loans, But Uncertainty Over Backpay Looms

Zero-interest loans total nearly $700 million as financial institutions rush to help federal workers

While federal employees wait for Congress to end the shutdown and restore their paychecks, banks and credit unions across the country have launched emergency loan programs to help workers bridge the financial gap. However, recent uncertainty over guaranteed backpay has complicated these relief efforts.

Massive Response from Lenders

USAA has emerged as the largest provider of shutdown assistance, issuing more than 119,000 no-interest loans totaling approximately $365 million to federal employees since the shutdown began. The loans, which carry 0% APR and zero fees, are capped at $6,000 per borrower and must be repaid within three months of receiving backpay.

"These are unique, zero-interest, zero-fee loans built specifically to help people meet their essentials during this crisis," USAA certified financial planner JJ Montanaro told CBS News.

Navy Federal Credit Union, which serves military personnel and their families, has issued $53 million in loans through its "Paycheck Assistance Program," offering amounts up to $6,000 based on members' regular deposit amounts. The credit union reported "significantly higher" enrollment compared to the 2018-2019 shutdown, when it issued loans to 32,000 recipients.

PenFed Credit Union, Gate City Bank, and dozens of other institutions have joined the effort. Iowa-based Veridian Credit Union approved more than $55,000 in government advance loans to 32 members within days of paychecks stopping. California's Redwood Credit Union has issued approximately $160,000 in zero-interest loans to 60 recipients.

Range of Assistance Programs

Financial institutions are offering various forms of relief tailored to individual circumstances:

Zero-Interest Loans: Most programs offer interest-free loans ranging from $700 to $6,000, typically due within 30 to 90 days after backpay is received. United States Senate Federal Credit Union offers $5,000 relief loans at 0% interest for 90 days. FCNB Bank provides up to $5,000 at 0% APR for 90 days, with repayment required when the shutdown ends and backpay is awarded.

Payment Deferrals and Extensions: Multiple banks are allowing affected customers to skip mortgage, auto loan, and credit card payments without penalties. TD Bank is refunding overdraft fees, non-TD ATM fees, and monthly maintenance charges while waiving CD early withdrawal penalties.

Fee Waivers: Institutions are refunding or waiving various banking fees, including overdraft charges and skip-a-payment fees. FCNB Bank offers overdraft forgiveness on deposit accounts for 90 days to qualifying federal employees.

Credit Card Relief: Bank of America, Chase, and Capital One are extending payment due dates and temporarily waiving certain fees for affected customers who reach out to discuss their situations.

Automatic Assistance: Service Credit Union is automatically posting one-time payroll credits to accounts of active-duty military and Department of Defense civilian employees based on their average direct deposit amounts from the past three months.

Military Relief Organizations Join Effort

Military-specific assistance programs have also mobilized:

Coast Guard Mutual Assistance (CGMA): Offering interest-free loans up to one month's Basic Allowance for Housing (BAH) for active-duty, reserve, and civilian Coast Guard employees
Navy-Marine Corps Relief Society (NMCRS): Providing interest-free loans up to $3,000 for active-duty sailors and Marines
Air Force Aid Society (AFAS): Issuing zero-interest loans repaid within 30 days after receiving backpay
Army Emergency Relief (AER): Offering zero-interest loans up to $6,000 to active-duty soldiers and their families

State and Local Government Programs

State governments are also stepping in. Maryland launched a Federal Shutdown Loan Program offering one-time, no-interest $700 loans to excepted employees who must work without pay. The loans must be repaid within 45 days after the shutdown ends.

Virginia Governor Glenn Youngkin declared a state of emergency specifically to allow SNAP benefits to continue past November 1 for more than 850,000 Virginians. Prince George's County, Maryland, is considering legislation offering priority hiring for laid-off federal workers and expanded food assistance.

The Backpay Uncertainty Problem

The explosion of shutdown lending programs was predicated on the assumption that federal workers are guaranteed backpay under the Government Employee Fair Treatment Act of 2019. However, the Office of Management and Budget's October 3 revision to shutdown guidance—removing references to guaranteed backpay for furloughed employees—has created significant uncertainty.

Banks typically structure these loans with automatic repayment from direct deposit once government paychecks resume. USAA, for example, states that loans must be repaid "within 30 days after receiving backpay," while Navy Federal's loans are automatically deducted when workers receive paychecks again.

If furloughed workers (as opposed to excepted employees required to work) are ultimately denied backpay under OMB's new interpretation, these loans would become unsecured debt that borrowers might struggle to repay without other income sources.

"I interpret that last clause as triggering when the payment will go out — not if the payment will go out," said Kevin Owen, a partner at Gilbert Employment Law, disputing OMB's interpretation. However, the legal question remains unresolved.

Real Impact on Federal Workers

The need for assistance has been dramatic. At a Capital Area Food Bank distribution in Prince George's County, Maryland—home to more than 60,000 federal workers—middle-class professionals lined up for hours to receive boxes of food. The initial 300 boxes meant for 150 families ran out, requiring emergency reinforcements.

Naomi Pyle, a San Diego resident whose Navy husband is affected by the shutdown, applied for a Navy Federal loan to cover her family's bills, including therapy sessions for their son who has autism and payments for their daughter's braces. She's delaying her own needed dental work until the shutdown ends.

Cheryl Carter, a union representative with the American Federation of Government Employees, told NPR she has been forced to take out loans and seek a hardship withdrawal from her 401(k). "I kind of feel like I'm in a pool and I'm trying to swim to the top, but every time I get to the middle, I'm getting knocked back down," she said.

Resources Compiled

Federal employees have created crowdsourced resources to help each other navigate available assistance. Spreadsheets compiled by former NIH employees and others list credit unions, banks, food banks, and community resources offering support during the shutdown.

The Federal Employee Education and Assistance Fund offers both emergency hardship loans and shutdown grants, historically around $100 per recipient. Utility companies like Pepco are offering payment plans stretching bills over up to a year, while also enabling "Gift of Energy" donations allowing others to pay toward affected workers' utility bills.

The American Bankers Association has compiled a comprehensive list of institutions offering assistance, noting that "America's banks have taken actions to help federal employees, members of the military and their families, and federal contractors who have been affected."

Looking Ahead

As the shutdown stretches past its 30th day with no resolution in sight, the financial strain on federal workers deepens. The $700 million in loans issued so far represents only a fraction of the approximately $21 billion in withheld federal wages estimated by the Bipartisan Policy Center if the shutdown lasts through Thanksgiving.

While these lending programs provide critical short-term relief, they cannot indefinitely replace lost income—particularly if the legal guarantee of backpay remains in question. Financial advisors are encouraging affected workers to prioritize essential expenses like housing, food, and utilities while cutting discretionary spending wherever possible.

For federal employees seeking assistance, the Partnership for Public Service and MyFedBenefits have compiled comprehensive resources listing available programs. Workers are encouraged to contact their financial institutions directly to discuss available options, as many banks are providing customized assistance beyond publicly announced programs.

Additional Sidebar Sources

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CBS News. (2025, October 31). "As they miss paychecks, furloughed federal workers are taking out bank loans to help pay the bills." Retrieved from https://www.cbsnews.com/news/government-shutdown-2025-federal-workers-loans/
Citizens Bank. (2025, October). "What the 2025 Government Shutdown Means for Your Finances." Retrieved from https://www.citizensbank.com/learning/2025-government-shutdown.aspx
FOX 5 DC. (2025, October 27). "Government Shutdown 2025: Resources for struggling federal workers." Retrieved from https://www.fox5dc.com/news/government-shutdown-2025-resources-struggling-federal-workers
Government Executive. (2025, October). "Federal employees crowdsource resources to support each other during shutdown." Retrieved from https://www.govexec.com/workforce/2025/10/federal-employees-crowdsource-resources-support-each-other-during-shutdown/408670/
MyFEDBenefits. (2025, October). "Shutdown Assistance Map - Resources for Furloughed/Excepted Federal Workers." Retrieved from https://myfedbenefitshelp.com/shutdown-assistance-map/
NPR. (2025, October 24). "Federal workers miss first full paycheck since shutdown began." Retrieved from https://www.npr.org/2025/10/24/nx-s1-5581505/government-shutdown-federal-employees-paycheck
United States Senate Federal Credit Union. (2025). "Federal Government Shutdown Assistance." Retrieved from https://www.ussfcu.org/federal-government-shutdown-assistance.html

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This story was compiled from official government sources, court documents, news reports, and agency statements current as of October 31, 2025.

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