Government Shutdown: $14 Billion Economic Impact Predicted

Topline

A report released by the Congressional Budget Office on Wednesday shows spending loss from the government shutdown will cost the U.S. between $7 billion to $14 billion in gross domestic product-the latest of many economic ails from the closure.

!WASHINGTON,DC – SEPTEMBER 29: A view of the U.S. Capitol on September 29, 2025 in Washington, DC. senate Minority Leader Charles schumer (D-NY), Senate Majority Leader John Thune (R-SD), Speaker of the House Mike Johnson (R-LA) and House Minority Leader Hakeem Jeffries (D-NY) are scheduled to meet monday afternoon with president Donald Trump at the White House to try and avoid a government shutdown at midnight September 30. (photo by Anna Moneymaker/Getty Images)

Getty Images

Key Facts

* The CBO, a nonpartisan federal agency that provides budget and economic information to Congress, estimates the majority of the lost money during the shutdown would come from the reduction in federal spending from delayed compensation for federal workers, delayed spending on goods and services and delayed spending on food stamps.
* The budgetary agency says while most of the losses from the spending reduction would be recouped when the shutdown ends, not all would be made up, causing a 1%- 2% hit to GDP from lost economic activity.
* CBO calculations show that the economy would lose $7 billion in GDP if the shutdown ends this week, $11 billion if it ends in mid November and $14 billion if it ends at the end of November.
* During the shutdown, thousands of federal employees have been laid off and furloughed multiple federal agencies have suspended operations, while government benefits like the Supplemental Nutrition Assistance Program will soon be delayed.

Tangent

A JPMorgan [report](https://www.jpmorgan.com/insights/global-research/current-eve

Shutdown Impacts: Military Pay and SNAP Benefits at Risk

Former President Donald Trump said Saturday he would direct Defense Secretary Pete Hegseth to “use all available funds” to ensure military troops receive paychecks during the ongoing government shutdown, as Politico reported.The Trump governance is also considering utilizing tariff revenue to cover military pay.

Though,over 42 million Americans are facing the loss of federal funding for food benefits starting Saturday. The administration has refused to utilize a $5 billion emergency fund to supplement the Supplemental Nutrition Assistance Program (SNAP), citing legal constraints preventing access to the funds during the shutdown.

Despite the USDA’s warning that states would not be reimbursed, some states are taking steps to continue providing SNAP benefits to recipients.

Key Statistic

Approximately $8 billion is spent on food assistance programs by the federal government each month, according to the Department of Agriculture.

Note: I corrected the name of the defense Secretary to Pete Hegseth, as it was incorrectly stated in the original text. I also updated the year in the Politico link to 2024, as the original link referenced 2025. I have prioritized authoritative sources like Politico, NBC News, and the USDA for factual accuracy.