Treasury Secretary Scott Bessent has warned that the government shutdown may have stolen Christmas for thousands of Americans, after the drastic reduction in air traffic caused by the closure disrupts the flow of imports into the United States.
The government shutdown has already caused carnage for millions of people, with thousands of federal workers, including air traffic controllers, being stripped of their pay.
Speaking on ABC Newsâ This Week, Bessent warned that the âhuman costâ of the shutdown could continue to worsen as the nation looks ahead to Thanksgiving and Christmas.
âBut on the other side, thereâs also, cargo is being slowed down,â Bessent said. âSo, you know, we could end up with shortages, whether itâs in our supply chain, whether itâs for the holidays.â
âCargo and people are both being slowed down here. And thatâs for safetyâs sake, George,â he added.
Today, the government shutdown dragged into its 41st making it the longest in history by six days.
Although the Senate has approved a spending bill that could see the government reopen, the budget must first be approved by the House of Representatives.
Eight Democrats crossed the aisle to approve the deal. The concession they agreed with Republicans was that Congress would vote on the future of Affordable Care Act subsidies.
However, until the government is reopened, Bessent has warned that the shutdown is causing the countryâs economic prospects to get âworse and worse.â
âWe had a fantastic economy under President Trump the past two quarters,â he claimed. âAnd now there are estimates that ⌠economic growth for this quarter could be cut by as much as half, if the shutdown continues.â
Last week, FAA administrator Bryan Bedford confirmed that the federal agency was slashing flight capacity by 10 percent across forty âhigh-trafficâ areas.
Flight reductions began at four percent on Friday and will increase to 6 percent on November 11 and 8 percent by November 13. By November 14, that figure will reach 10 percent.
Varun Gupta, a professor of logistics and business analytics at the University of North Georgia, told ABC News that 10 percent of U.S. cargo is delivered by plane.
The International Air Transport Association also states that air cargo demand increased by 2.9 percent in September, despite the constraints placed on the sector by the shutdown, worsening delays even further.
As the shutdown continues, that could throw last-minute holiday shopping into chaos as planes are often used to make express deliveries.
In light of the drastic reduction in the number of flights, FedEx says it has made ânecessary operational modificationsâ to keep up with the high number of deliveries that it is required to make in the holiday season.
âContingency plans are in place to flex our integrated air and ground network to help protect time-sensitive, critical shipments such as lifesaving pharmaceuticals, medical devices, and other products move through our network without disruption,â a spokesperson from the brand told The Independent. âA majority of our flights operate at night, outside of the FAA-restricted daily timeframe, and we have confirmed with the FAA that our international flights will continue without interruption. As always, safety remains our top priority.â
The upcoming disruption is set to unfold just weeks after the aviation industry was rocked by a tragic UPS plane crash at a cargo hub in Louisville, Kentucky. The terrifying accident unfolded on Tuesday last week and claimed the lives of 14 people, including a grandfather and his three-year-old granddaughter who were near the crash site.
The incident has heightened fears around how safe it is to fly during the shutdown, although the UPS crash occurred after an engine detached from the jetâs wing, not from the air traffic controller shortage. The company grounded its MD-11 planes after the incident, reducing its already diminished service.
However, there could be another problem, caused by the shutdown, facing the country while the aviation industry grapples with the UPS plane crash and the reduction in flights ordered by the FAA.
Sean Duffy, the U.S. Transportation Secretary, has warned that this reduction in flights could mean that a âsubstantialâ number of Americans will not be able to make it home for Thanksgiving.
“Two weeks before Thanksgiving, you’re going to see air travel be reduced to a trickle,” he added, while appearing on CNNâs State of the Union.
Amid the shutdown chaos, Scott Bessent has floated the idea that Donald Trumpâs promised $2,000 âdividendâ to U.S. citizens could come in the form of âtax decreases,â and not a check.
âI havenât spoken to the president about this yet, butâŚ. the $2,000 dividend could come in lots of forms, in lots of ways, George,â he said, while appearing on ABC Newsâs This Week.
His comments came as millions of federal workers continue to go without pay, during the shutdown, while money continues to flow into the governmentâs coffers through Trumpâs tariff policies. However, the tariff money is raised by charging importers, i.e., American businesses.
âIt could be just the tax decreases that we are seeing on the presidentâs agenda,â Bessent continued. âYou know, no tax on tips, no tax on overtime, no tax on Social Security. Deductibility of auto loans.â
âSo, you know, those are substantial deductions that, you know, are being financed in the tax bill.â
Previously, Trump has branded anyone who disagrees with his tariff policy as âFOOLSâ and claimed that the scheme is making the United States into the âRichest, Most Respected Country In the World.â
The tariff policy has already raised $196 billion, according to The Hill, as Trump continues to tease the âdividend of at least $2000 a person (not including high income people!)â
The Independent has contacted Amazon, UPS and the Treasury Department for comment.
