The U.S. government has shut down on October 1, 2025. Here’s how leaders can navigate this situation and guide their teams through crisis and uncertainty.
The U.S. government has officially shut down as of 12.01 a.m. October 1, 2025, bringing many public services to a grinding halt as expected.
An estimated 750,000 federal employees are being furloughed. This is due to a funding crisis, with neither left-wing Democrats or right-wing Republicans able to reach a consensus for government funding.
Agencies and programs such as The National Flood Insurance Program, federal National Parks, NASA, and the CDC have been significantly impacted as far as federal employment is concerned. Workers and companies operating in the tourism industry, and even air traffic controllers and TSA are being affected. Some vital workers (such as airport workers) will be required to report to work without pay, which could lead to transport delays as employees resist and call in sick or otherwise.
This federal employment upheaval is not only affecting government workers; it’s having a knock-on effect on the companies that depend on their work too. And on a larger scale, this extends to more than a funding crisis–it’s a leadership crisis.
As a public sector manager or leader, or a business leader in the private sector whose operations are heavily tied to federal workers, it falls on you to figure out how to lead and operate in times of crisis, with minimal resources, when everyone is facing job uncertainty, low morale, and slowed-down momentum.
So how exactly do you steer your teams through times of crisis?How To Lead In This Time Of Crisis
If you’re also a federal worker, of course you would’ve already identified which roles on your team are being furloughed versus the employees who are the exception to the rule, (those required to continue working despite no pay).
Having employees work in uncertain conditions with delayed pay can weaken morale and motivation. So to keep them going, take these steps:1. Recognize Your Team
Spend time appreciating their work, both publicly (for example, on LinkedIn), and in team and department chats on Teams and Slack.
