US government funding lapsed as Wednesday began after the White House and Congress failed to reach a deal on FY2026 appropriations, triggering a shutdown halting federal services and furloughing hundreds of thousands of workers. Financial markets signaled concern, with contracts tied to the S&P 500 pointing lower as agencies brace for delayed data and operational slowdowns, as reported by the Wall Street Journal.

Why this shutdown is different

Administration officials say they plan to use the shutdown to reduce the size of government, cutting jobs across agencies—moves already facing legal challenges from federal worker unions. Operational impacts to watch:

• Labor Department data releases, likely including Friday’s jobs report, are expected to pause, complicating market views and procurement planning that rely on timely indicators.
• CDC will halt analysis of surveillance data for reportable diseases, and many workplace safety inspections will be canceled, affecting compliance timelines.
• TSA officers and air‑traffic controllers will work without pay, raising risk of checkpoint closures and flight delays if absenteeism rises.
• National parks will largely remain open with limited staffing, and Smithsonian museums plan to stay open at least through 6 October using prior‑year funds.
• Many program offices will halt new awards and pause nonexcepted performance. Expect stop‑work orders where funding is unavailable. Document delays, preserve cost records, and evaluate entitlement to equitable adjustments under changes and suspension clauses.
• Options and task orders may be deferred absent prior‑year or working‑capital funds. Excepted activities tied to life, safety, and national security continue.
• Mission‑critical federal travel proceeds, but discretionary trips will be curtailed. Build slack for TSA staffing variability, favor refundable fares, and reconfirm approvals.