Defense Companies Starting to Feel Effect of the Shutdown

As the partial government shutdown moves into its third week, some American defense firms are starting to get multi-million-dollar IOUs instead of payments. Even though Pentagon projects are unaffected the Defense Department is already funded for fiscal 2019 the shutdown is squeezing contractors who do work for NASA, the Department of Homeland Security, Federal Aviation Administration, and other federal agencies. Many companies aren’t getting paid, even as they continue to pay the salaries of employees shut out of closed government offices.