{"id":123521,"date":"2025-11-07T21:02:09","date_gmt":"2025-11-07T21:02:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/123521\/"},"modified":"2025-11-07T21:02:09","modified_gmt":"2025-11-07T21:02:09","slug":"airspace-cuts-begin-consumer-mood-sours-as-trumps-team-calls-impact-far-worse-than-expected","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/123521\/","title":{"rendered":"Airspace cuts begin, consumer mood sours as Trump’s team calls impact ‘far worse’ than expected"},"content":{"rendered":"\n

A measure of consumer confidence dropped to a three-year low<\/a> Friday, partially due to shutdown worries, as a Trump adviser said the economic effects were “far \u200bworse than we expected” as the now 38-day shutdown continued to ripple across the US economy.<\/p>\n

For travelers, US airlines have already canceled hundreds of flights, after an order from the \u200bFederal Aviation Administration to cut domestic \u200coperations took effect Friday morning.<\/p>\n

The first cut of 4% became mandatory at 6 a.m. ET Friday at 40 high-traffic airports. Major carriers \u2014 from United (UAL<\/a>) to Delta (DAL<\/a>) to American Airlines (AAL<\/a>), and many others \u2014 had preemptively announced flight changes late Thursday.<\/p>\n

The FAA’s cuts will deepen next week and reach 10% if the shutdown continues.<\/p>\n

Meanwhile, a federal judge in Rhode Island on Thursday ordered the Trump administration to immediately cover Supplemental Nutrition Assistance Program (SNAP) benefits for tens of millions of Americans.<\/p>\n

The Trump administration had previously announced plans to only pay partial benefits for the program, which about 1 in 8 Americans rely on.<\/p>\n

Trump had also previously threatened that money would only go out when the government reopens “and not before.\u201d The Department of Justice immediately appealed the ruling.<\/p>\n

On Capitol Hill, the growing economic ripples have increased the pressure on congressional leaders to find a way out of the shutdown \u2014 which this week became the longest in US history \u2014 but with any sort of breakthrough still elusive.<\/p>\n

The Senate has teed up its 15th series of votes Friday to end the shutdown, but those are expected to again come up short.<\/p>\n

Bipartisan talks on Capitol Hill have shown some signs of progress, but leaders remain locked in a stalemate that appears to have increased in the political fallout from Tuesday’s elections.<\/p>\n

Trump blamed the shutdown as a key “negative” that contributed to GOP losses in Tuesday’s elections, while Democrats celebrated their electoral wins<\/a> and suggested their stand on the shutdown \u2014 especially their push to elevate the healthcare issue \u2014 was being appreciated by voters.<\/p>\n

Read more: How the government shutdown impacts your money: student loans, Social Security, investments, and more<\/a><\/p>\n

Here are the latest updates as the impacts of the government shutdown unfold.<\/p>\n

LIVE 56 updates \"Ben Trump adviser says the shutdown’s effect ‘far \u200bworse than we expected’ but that much of the pain could eventually be reversed <\/p>\n

White House economic \u200cadviser Kevin Hassett offered a dire warning Friday morning in an interview on the Fox Business Network<\/a>, saying that the economic impact of the US government shutdown is “far \u200bworse than we expected.”<\/p>\n

He suggested that the shutdown could cut economic growth for the fourth quarter in half (from 3% to 1.5%) and lead to a permanent exodus from the federal government’s workforce.<\/p>\n

He added that pockets of the economy, from travel and leisure to construction, “are really hurting right now.”<\/p>\n

But moments later, he spoke to reporters<\/a> at the White House and offered more tempered comments when he noted that whenever the government reopens, “there should be a big bounce-back right away” that could see a GDP rebound.<\/p>\n

Indeed, much of the economic pain seen in past shutdowns has later been made up when a reopened government catches up on spending, even as longer shutdowns have led to more permanent cuts.<\/p>\n

The Congressional Budget Office previously studied the 35-day shutdown in 2018\/2019 and found that it cost the US economy about $11 billion at the time. But much of that loss was later made up, even as $3 billion in cuts were permanent.<\/p>\n

US consumer sentiment plunges as Americans grow worried about shutdown’s impacts <\/p>\n

US consumers grew more pessimistic about the economy, with a measure of consumer confidence <\/a>released Friday showing sentiment dropped to a three-year low. Households became more concerned about the effects of the ongoing government shutdown on the US economy and their finances.<\/p>\n

Yahoo Finance’s Emma Ockerman reports:<\/p>\n

Read more here.<\/a><\/p>\n

Federal judge orders Trump administration to make full SNAP payments \u2014 starting today <\/p>\n

A federal judge in Rhode Island announced Thursday he was ordering the Trump administration to immediately cover food stamp benefits for tens of millions of Americans in November.<\/p>\n

But it may take at least a few days before the benefits are restored.<\/p>\n

CNN reports<\/a><\/p>\n

Read more here<\/a><\/p>\n

Flight cancellations accelerate as airlines comply with the government’s air traffic limits <\/p>\n

US airlines have already canceled hundreds of flights as the Federal Aviation Administration ordered airlines to reduce domestic flight operations by 4% at 40 high-traffic airports starting at 6 a.m. ET on Friday.<\/p>\n

The cuts will increase next week to reach 10%.<\/p>\n

The Associated Press reports<\/a> on the latest for travelers:<\/p>\n

Read more here<\/a>.<\/p>\n

\"Ben Thu, November 6, 2025 at 3:00 PM UTC Immediate reaction suggests Tuesday’s election results may delay any shutdown deal <\/p>\n

President Trump appeared with Senate Republicans on Wednesday and rhetorically asked if this week’s election results could herald a quicker end to the shutdown.<\/p>\n

He then immediately answered his own question saying “I don’t think so.”<\/p>\n

It may be one of the only things that the president and Democrats agree on with new signs emerging on Capitol Hill throughout the day Wednesday that the election result isn’t pushing the sides towards compromise and could instead be pushing them further apart.<\/p>\n

CNN spoke to lawmakers<\/a> and found that the lesson some progressives like Senator Bernie Sanders have taken from the result is that outsized Democratic victories were a reason to keep fighting.<\/p>\n

USA today also took a look at the issue<\/a> and found similar political winds in evidence.<\/p>\n

\"Ben Thu, November 6, 2025 at 1:07 PM UTC From Anchorage to Teterboro: These 40 airports are set to be impacted by the coming 10% air traffic cut <\/p>\n

Transportation Secretary Sean Duffy announced plans Wednesday to cut air traffic capacity by 10% at 40 “high-volume” airports in the face of air traffic controller shortages.<\/p>\n

These cuts are set to impact some of the nation’s busiest airports. The cuts are expected to begin this Friday with full implementation by next week.<\/p>\n

The full tally of impacted airports wasn’t immediately released, but CBS News on Thursday obtained a full (but apparently not final) list<\/a>, which the outlet warned still could change in the days ahead as the government readies its final order.<\/p>\n

Here’s the list, organized alphabetically by airport code.<\/p>\n

Read more here<\/a>.<\/p>\n

\"Ben Wed, November 5, 2025 at 2:35 PM UTC Trump weighs in election results saying \u2018the shutdown was a big factor, negative for the Republicans\u2019 <\/p>\n

Tuesday\u2019s election results saw Democratic wins across the board<\/a> and President Trump didn\u2019t mince words Wednesday morning when he said \u201cthe shutdown was a big factor, negative for the Republicans.\u201d<\/p>\n

But whether the results from voters \u2014 which saw Democratic gains from New York to Virginia to California Tuesday night \u2014 could provide an opening towards ending the now 36-day stoppage wasn’t immediately clear with Trump suggesting his next moves will not be in the direction of bipartisan compromise.<\/p>\n

\u201cWe can\u2019t be extorted,\u201d the president added of Democrats during the breakfast event with Republican lawmakers, reiterating his view that “it\u2019s time for Republicans to do what they have to do and terminate the filibuster.”<\/p>\n

Top Republicans in attendance \u2014 from Senate Majority Leader John Thune on down \u2014 have ruled out ending the filibuster previously but Trump persisted saying of Democrats \u201cI don\u2019t think they are really getting the blame that they should\u201d and that efforts to bring them across the aisle aren’t working.<\/p>\n

“It\u2019s time to have a really good talk,\u201d Trump added as he ushered reporters out of the State Dining Room of the White House “we must get the government back open soon, and really immediately.”<\/p>\n

\"Brett Tue, November 4, 2025 at 11:22 PM UTC White House: US to send SNAP funds despite Trump post <\/p>\n

From Bloomberg:<\/p>\n

Read more here<\/a>.<\/p>\n

\"Ben Tue, November 4, 2025 at 6:18 PM UTC Trump administration says the shutdown may force the US to close some air space next week <\/p>\n

Transportation Secretary Sean Duffy warned on Tuesday that if the shutdown continues for another week it could lead to chaos” as well as a the potential need to close some of the airspace due to staffing issues..<\/p>\n

Reuters reports<\/a><\/p>\n

Read more here<\/a><\/p>\n

\"Ben Tue, November 4, 2025 at 6:00 PM UTC TSA workers are riding out this shutdown better than in 2019. Better pay is part of the reason why. <\/p>\n

Transportation Security Administration (TSA) officials haven’t been paid for weeks but have seen less disruptions this time around than during the last shutdown in 2018.<\/p>\n

Air traffic controllers are more in focus this time around and part of the reason for that switch \u2014 Reuters reports<\/a> \u2014 is increased pay and job security that TSA officials have enjoyed in recent years.<\/p>\n

Read more here<\/a><\/p>\n

\"Ben Tue, November 4, 2025 at 2:45 PM UTC Talks to end the shutdown appear to be making progress <\/p>\n

Multiple signs on Capitol Hill early this week pointed to the possibility that bipartisan talks toward an end to the shutdown are making progress.<\/p>\n

There is (very cautious) optimism that at least a short-term end to the shutdown could be coming into focus as lawmakers look toward a recess that is scheduled to start at the end of the week.<\/p>\n

Reuters reports on a change of tone<\/a>:<\/p>\n

Semafor adds that talks are getting into details<\/a> \u2014 most pressingly, how long to potentially keep the government open for this time:<\/p>\n

Mon, November 3, 2025 at 10:15 PM UTC Government shutdown has affected more than 3 million airline passengers <\/p>\n

An airline industry group said Monday that the government shutdown which began Oct. 1 has affected some 3.2 million airline passengers, in the form of delays and cancellations that can be traced back to a shortage of air traffic controllers, Reuters reports<\/a>.<\/p>\n

Air traffic controllers are federal employees who are expected to report to work during the shutdown even though they aren’t being paid. But many have started calling in sick, hence the shortage.<\/p>\n

Also on Monday, Transportation Secretary Sean Duffy said the Trump administration would close U.S. aviation if it looked like the shutdown was creating conditions making it too dangerous to travel.<\/p>\n

Read more here<\/a>.<\/p>\n

\"Ben Mon, November 3, 2025 at 6:02 PM UTC Trump administration says partial food aid benefits will be paid in November <\/p>\n

The Trump administration said Monday that it will partially fund the Supplemental Nutrition Assistance Program (SNAP) in response to two judges who issued rulings requiring it to keep the nation’s largest food aid program running.<\/p>\n

The Associated Press reports<\/a> on how the uncertainty for the most vulnerable Americans could continue.<\/p>\n

Read more here<\/a><\/p>\n

\"Ben Mon, November 3, 2025 at 2:00 PM UTC Halloween helped make this past weekend was the worst one yet at airports since the shutdown began <\/p>\n

Between Friday morning and Sunday night, there were 98 \u201cstaffing trigger\u201d reports at FAA facilities, a new CNN analysis of Federal Aviation Administration operations finds.<\/p>\n

This marks the worst weekend for air traffic control staffing shortages since the shutdown began .<\/p>\n

More from CNN<\/a><\/p>\n

Read more here <\/a><\/p>\n

\"Ben Mon, November 3, 2025 at 12:42 PM UTC Trump administration faces a Monday deadline to outline its plans for SNAP <\/p>\n

Days of legal wrangling over SNAP, the nation\u2019s biggest food aid program, could get some clarity soon. The Trump administration faces a Monday deadline to tell two federal judges whether it will comply with court orders to fund the program.<\/p>\n

The Associated Press reports<\/a><\/p>\n

Read more here<\/a><\/p>\n

Sun, November 2, 2025 at 7:59 PM UTC Weekend flight delays rise at O’Hare, Newark and other airports amid air traffic controller shortages <\/p>\n

As the government shutdown drags on, major US airports were seeing an uptick in flight delays on Sunday amid the ongoing shortage of air traffic controllers, Reuters reported.<\/p>\n

Air traffic controllers are among the federal employees expected to continue to work without pay during the shutdown, but many have called in sick, causing a ripple effect at busy airports like Newark. New York City’s Emergency Management office posted to social media that travelers flying to or from the New York area should check flight status before heading to the airport.<\/p>\n

Read more here.<\/a><\/p>\n

Sun, November 2, 2025 at 4:02 PM UTC Bessent says Trump admin won’t appeal court rulings on SNAP payments <\/p>\n

Treasury Secretary Scott Bessent said Sunday that the Trump administration does not plan to appeal a court ruling ordering partial payments of SNAP benefits during the government shutdown, Reuters reported:<\/p>\n

The USDA has said it has insufficient funds to pay full benefits to the 42 million low-income Americans who rely on the Supplemental Nutrition Assistance Program, or SNAP, and the administration argued the USDA doesn’t have the authority to pay the benefits while the government remains shut down.<\/p>\n

But two judges in Providence and Boston have ruled the suspension of SNAP benefits was unlawful and ordered the Trump administration to start paying full benefits by Monday or partial benefits by Wednesday.<\/p>\n

Read more here<\/a>.<\/p>\n

Sun, November 2, 2025 at 2:08 PM UTC ‘Irreparable harm’: Court rules Trump administration must pay SNAP benefits this week <\/p>\n

As millions of Americans faced an abrupt pause in their Supplemental Nutrition Assistance Program, or SNAP benefits this weekend amid the government shutdown, a federal judge in Rhode Island on Saturday ordered the Trump administration to start paying full benefits by Monday or partial benefits by Wednesday, citing “irreparable harm” if the benefits are not paid, Reuters <\/a>reports.<\/p>\n

Read more here.<\/a><\/p>\n

Sat, November 1, 2025 at 4:50 PM UTC Furloughed government workers struggle to get unemployment benefits <\/p>\n

Some government workers who have been furloughed because of the shutdown are having difficulty qualifying for and receiving unemployment benefits \u2014 possibly in part because the workers who would assist with processing approvals may have been furloughed themselves, the Associated Press reports:<\/p>\n

Read more here.<\/a><\/p>\n

\"Brett Sat, November 1, 2025 at 12:00 AM UTC Republicans shrug off Trump’s call to zap filibuster <\/p>\n

Senate Majority Leader John Thune and other Republican senators brushed off President Trump’s call to scrap the filibuster from Senate rules.<\/p>\n

Via Reuters:<\/p>\n

Read more here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"A measure of consumer confidence dropped to a three-year low Friday, partially due to shutdown worries, as a…\n","protected":false},"author":2,"featured_media":123522,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[57433,138,31902,86317,219,46542,86318,47462,111,139,69,2179],"class_list":["post-123521","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-american-airlines","tag-business","tag-consumer-confidence","tag-economic-effects","tag-economy","tag-federal-aviation-administration","tag-friday-morning","tag-government-shutdown","tag-new-zealand","tag-newzealand","tag-nz","tag-trump"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/123521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=123521"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/123521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/123522"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=123521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=123521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=123521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}