Government Shutdown 2025 - Colorado Springs Impacts

A prolonged government shutdown under the Trump Administration is causing significant financial strain on federal workers and military families in Colorado Springs, a community heavily reliant on federal employment. Local nonprofits have also seen a surge in demand for assistance. 

Impacts on federal employees and military families

• Missed paychecks: Colorado Springs has a large concentration of federal and military personnel, and thousands are facing uncertainty as paychecks are delayed. Active-duty military personnel will report to work but will not receive pay until the shutdown ends.
• Financial stress: The lack of pay is creating severe financial hardship for families, with military spouses reporting that many households already live paycheck-to-paycheck.
• Support for affected families: In response, local groups like the Pikes Peak United Way and Mt. Carmel Veteran Service Center are stepping in to provide food and other resources. Financial institutions are also offering services to help residents manage their finances. 

Impact on military bases

• Continued vital services: Fort Carson, Peterson Space Force Base, and the Air Force Academy are continuing vital services.
• Furloughed civilian staff: Civilian staff are being furloughed, and at the Air Force Academy, military faculty are covering courses taught by furloughed civilian instructors.
• Suspended hunting: Hunting on military-managed land, including Fort Carson and the Piñon Canyon Maneuver Site, has been suspended. Colorado Parks and Wildlife (CPW) is offering refunds for affected licenses. 

Impact on social programs and city services

• Increased demand for aid: Local nonprofits are already stretched thin as federal workers and contractors turn to them for food and financial assistance. The Pikes Peak United Way is expecting the community to grow further if the shutdown persists.
• Limited federal services: Critical federal services like Social Security and VA benefits will continue, but applicants may face slower processing due to staffing reductions.
• City budget stress: The city of Colorado Springs already faces a budget shortfall for 2026, and a prolonged shutdown could add further economic stress. 

Impact on health care and contractors

• Reduced health benefits: A separate but related political dispute means that Affordable Care Act (ACA) tax credits could expire, leading to skyrocketing health insurance premiums for millions of Coloradans.
• Contractor layoffs: The shutdown could affect local contractors who depend on federal services, as some federal health program workers have already been notified of layoffs.