Government Shutdown May Cost Economy Up to $14 Billion
The U.S. economy faces significant losses due to the impending federal government shutdown. A recent report by Congress’s nonpartisan budget office predicts a potential economic impact ranging from $7 billion to $14 billion.
Economic Consequences of Government Shutdown
The Congressional Budget Office (CBO) forecast indicates that the shutdown could reduce gross domestic product (GDP) by 1 to 2 percentage points in the fourth quarter of 2025.
Impact on Federal Employees and Low-Income Americans
A major factor driving these losses is the missed paychecks for federal workers. The disruption also includes the interruption of food benefits for low-income Americans. These two factors are expected to strain the economy during the shutdown period.
Key Findings from the Report
- Projected economic losses range between $7 billion and $14 billion.
- Expected GDP reduction of 1 to 2 percentage points in late 2025.
- Federal workers will struggle without timely paychecks.
- Low-income Americans will face challenges with halted food benefits.
As the government shutdown looms, these economic predictions highlight the ripple effects it could have on various sectors. The potential downturn underscores the urgency to resolve the underlying issues causing the shutdown.
