Federal shutdown could cost US economy up to $14 billion [View all]
Source: Aol/Reuters
Wed, October 29, 2025 at 4:42 PM EDT
WASHINGTON (Reuters) -The federal government shutdown could cost the U.S. economy between $7 billion and $14 billion, shaving up to 2% from gross domestic product in the fourth quarter due to the lapse in government spending, the nonpartisan Congressional Budget Office said on Wednesday.
The partial shutdown was in its 29th day on Wednesday with no end in sight, as Senate Republicans called on Democrats to support a stopgap measure to fund federal agencies through November 21 and Democrats demanded negotiations to extend expiring federal tax credits to help Americans purchase private health insurance coverage through the Affordable Care Act.
CBO estimated that the economy would suffer as a result of delayed federal spending for employee compensation, goods and services, and food stamp benefits for low-income Americans.
"Although most of the decline in real GDP will be recovered eventually, CBO estimates that between $7 billion and $14 billion will not be," agency director Phillip Swagel said in an October 29 letter to House of Representatives Budget Committee Chairman Jodey Arrington, a Texas Republican who requested the analysis.
Read more: https://www.aol.com/articles/federal-shutdown-could-cost-us-204206724.html
Link to Congressional Budget Office (CBO) REPORT - https://www.cbo.gov/system/files/2025-10/61823-Shutdown.pdf
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