The United States government shutdown that began October 1, 2025, entered its second week on October 10 with no resolution in sight. More than 23,000 flights have been delayed since Monday as 13,000 air traffic controllers work without pay. Federal agencies remain closed while partisan disputes over funding bills continue between President Donald Trump’s administration and Democratic lawmakers.[1][2][3]
Air Traffic Control Crisis
The Federal Aviation Administration confirmed on October 10 that staffing shortages among air traffic controllers have caused five consecutive days of nationwide flight delays.[2] Approximately 13,000 air traffic controllers and 50,000 Transportation Security Administration personnel are required to work without receiving salaries during the shutdown.[3] These workers are expected to receive partial paychecks next week for work completed before October 1.[3]
Airport Messaging Campaign
The Trump administration began airing videos at airports on October 9 blaming Democrats for the shutdown and subsequent delays.[3] Homeland Security Secretary Kristi Noem appeared in the video stating that Democratic lawmakers refused to fund federal government operations. Republican and Democratic leaders continue to blame each other for the impasse.[3]
Federal Agency Operations Suspended
The Securities and Exchange Commission has restricted operations to essential functions only with minimal staff, halting all initial public offering applications.[4][5] Companies including travel software startup Navan and tax advisory firm Andersen Group cannot proceed with planned public offerings until appropriations are restored.[5] The Food and Drug Administration stopped accepting new medical device submissions requiring user fees on October 3, affecting manufacturers preparing regulatory filings.[6]
Impact on Startups and Small Business
The shutdown has created multiple obstacles for startups relying on federal support:
- The Department of Labor halted processing of new Labor Condition Applications on October 1, freezing H-1B visa certifications for specialized workers.[7]
- Small Business Innovation Research and Small Business Technology Transfer grant awards remain suspended with proposals accepted but not processed until operations resume.[8]
- National Institutes of Health and Centers for Disease Control grant disbursements are paused, delaying research work for life science companies.[9]
- Economic data releases from Labor and Commerce Departments are postponed, reducing market transparency for business planning.[4]
- Federal Aviation Administration stopped issuing new launch licenses and airworthiness certifications, affecting commercial space and drone ventures.[4]
Energy Department Lithium Investment
On October 1, the Department of Energy announced it restructured a deal with Lithium Americas to acquire a 5 percent equity stake in both the Vancouver-based mining company and its Thacker Pass lithium project joint venture with General Motors.[10][11][12] The restructured agreement allows Lithium Americas to draw the first $435 million from a $2.26 billion government loan to develop the Nevada mine.[11] Energy Secretary Chris Wright stated the deal protects taxpayers and supports domestic lithium production.[10]
Private Capital Remains Active
Venture capital investment in artificial intelligence startups reached $192.7 billion through October 3, 2025, setting global records.[13][14] In the third quarter alone, United States venture capitalists allocated 62.7 percent of investment dollars to AI companies.[14] Despite the government shutdown disrupting public markets and regulatory processes, private funding continues to flow into established technology firms while lesser-known startups face more challenging conditions.[13][14]
