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How Will the Federal Shutdown Impact New Mexicans?

About 750,000 federal workers nationwide face furloughs or unpaid work as Congress deadlocks over health care and Medicaid funding, leaving New Mexico's 25,000 employees affected.

  • The federal government officially shut down on September 30 after Democrats and Republicans failed to pass a spending bill before the deadline.
  • The shutdown occurred due to ongoing disagreements over budget priorities, with Senate Democrats insisting that healthcare funding and Medicaid reductions be resolved before approving the spending bill.
  • In New Mexico, over 22,000 federal employees work at major labs and agencies, including Sandia and Los Alamos, which continue operations using available funds.
  • Essential workers like TSA and air traffic controllers will work without pay, with roughly 750,000 federal workers nationwide facing furloughs until back pay resumes after a deal is reached.
  • The shutdown threatens to disrupt services during a busy travel season in New Mexico, with economic fallout expected to spread nationwide as negotiations remain stalled.
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SBS News broke the news in Sydney, Australia on Wednesday, October 1, 2025.
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