Illinois Legislative News: October 6, 2025
Third Reading Consulting Group
As of midnight on October 1, 2025, the federal government shut down after Congress failed to pass a new funding bill. While shutdowns aren’t unusual, this one comes with added concern: some federal agencies have been directed to prepare for permanent staff reductions.
There are more than 153,000 federal employees in Illinois, including federal law enforcement and active-duty military. Many federal workers deemed “nonessential” are expected to be furloughed until a funding agreement is reached, while core programs such as Social Security, Medicare, Medicaid, and veterans’ health care will continue to operate. The U.S. Postal Service also continues to operate, as do essential services like border protection, disaster response, and law enforcement. Even so, the ripple effects are already being felt across a wide range of programs.
The most immediate impacts are expected to fall on federal services that rely on discretionary funding. These include:
- Furloughs of nonessential federal workers
- Delays in customer service for Social Security, Medicare, and VA
- Disruption to WIC, SNAP benefit delivery, and EBT retailer renewals
- Reduced food and environmental inspections (USDA, EPA)
- Limited operations at national parks and monuments
- Delays at airports (TSA, air traffic control)
- Freeze on federal research grants and small business loans
- Staffing cuts at the Department of Education, where about 87% of employees have been furloughed and most grant activity has been suspended
Programs that will not shut down, such as Social Security, Medicare, Medicaid, veterans’ benefits, mail delivery, and national security functions, provide some stability, but the broader economic and operational consequences are significant. History shows shutdowns cost far more than they save. The Congressional Budget Office (CBO) estimates that the 2018-19 shutdown reduced the Gross Domestic Product (GDP) by a total of $11 billion, including $3 billion that could not be recovered. This time, the added directive from the Office of Management and Budget to prepare for long-term workforce reductions raises the possibility that the impact will extend well beyond the shutdown itself.
Important Upcoming Dates – Statewide
October 14-16 – Veto Session Week 1
October 28-30 – Veto Session Week 2