The federal government entered its second week of shutdown as Congress has still failed to reach a funding agreement. While the U.S. House of Representatives has reached a tentative agreement, Senate negotiations remain stalled.
Trump administration gearing up for long battle: The administration is pursuing aggressive shutdown strategies, ranging from canceling projects in certain states to workforce reductions in federal agencies. These moves reduce immediate pressure points, potentially extending the duration of the shutdown.
Pain points for companies: For employers, a protracted shutdown could affect federal contractors and disrupt operations tied to federal approvals, inspections, and regulatory processes. Transportation impacts are also a concern: TSA agents and air traffic controllers are working without pay, raising the risk of increased absenteeism and further strain on an already stressed aviation system.
What it means for CHROs
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Federal contractor employees may face furloughs or halted projects.
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Travel disruptions could create operational and workforce challenges, especially where employees are required to travel domestically and or internationally.
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Extended uncertainty may dampen economic confidence, with ripple effects on hiring and workforce planning.
