The ongoing U.S. federal government shutdown is beginning to take a toll on the nation’s economy, Treasury Secretary Scott Bessent warned on Monday, as the closure entered its 13th day with no resolution in sight.
“This is getting serious. It’s starting to affect the real economy,” Bessent said during an interview with Fox Business Network’s Mornings with Maria. He did not specify the extent of the damage but signaled that the effects were spreading beyond Washington and into communities across the country.
Bessent said the Treasury Department has been forced to make difficult financial choices to keep essential operations running. “We are having to shuffle things around,” he explained, noting that paychecks for U.S. military service members were being prioritized over other federal obligations.
To make those payments possible, Bessent confirmed that funds had been withheld from nonessential services, including Washington’s Smithsonian museums and the National Zoo. “We are having to furlough workers here in DC and around the country,” he said.
The Treasury Secretary also reiterated that the shutdown is halting financial assistance for farmers, a key component of federal support programs in rural America. He added that official U.S. Treasury economic data — typically released on a regular schedule — would be delayed until after the shutdown ends.
The latest shutdown, triggered by a congressional deadlock over government spending, has disrupted operations across multiple agencies, from national parks to housing services. Analysts warn that the longer it continues, the greater the risk it poses to consumer confidence, supply chains, and federal contract workforces.
With no signs of an imminent compromise on Capitol Hill, economists say the financial and political costs of the shutdown are expected to mount in the days ahead, intensifying pressure on both parties to reach an agreement and reopen the government.
