Treasury Secretary Scott Bessent warned Sunday that the ongoing federal government shutdown is already impacting air travel and cargo shipments and could disrupt holiday retail supply chains while hindering economic growth under President Donald Trump.
Bessent told viewers of “This Week with George Stephanopoulos on ABC” that “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 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 concern extends beyond travel inconvenience and may now affect holiday gift supplies.
Bessent stressed that cargo flights are being delayed because the Federal Aviation Administration (FAA) has reduced its schedule, saying, “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, beginning with a four% 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 began on Oct. 1, and by early October, the FAA was warning of low staffing levels among air traffic controllers and other critical personnel, which compounded the risk that flight operations could be disrupted.
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, a significant delay in cargo flights could result in inventory shortages and higher prices.
That, in turn, would mean headwinds for the Trump administration’s pledge of a “fantastic economy” performance.
In Washington, the political stakes are significant.
With the shutdown still unresolved, lawmakers face pressure not only over federal funding but also over its ripple effects on the private sector and consumer expectations during key shopping weeks.
Bessent’s warning puts the administration’s economic narrative in direct tension with the operational realities of federal agency disruptions.
At the same time, the FAA’s safety justification for reducing flight capacity underscores that the shutdown is not merely a financial or staffing issue — it 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.
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