What was the financial cost of the government shutdown?

Key Concepts

• Government Shutdown: A situation where non-essential government operations cease due to a failure of Congress to pass appropriations bills.
• Congressional Budget Office (CBO): An independent, non-partisan federal agency that provides economic and budgetary analysis to Congress.
• Gross Domestic Product (GDP) Growth: A measure of the total value of goods and services produced in an economy over a specific period.
• Back Pay: Compensation owed to employees for work performed during a period when they were not paid.
• SNAP (Supplemental Nutrition Assistance Program): A federal program that provides food assistance to low-income individuals and families.
• WIC (Women, Infants, and Children): A federal program that provides nutritional support to low-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children up to age five who are found to be at nutritional risk.

Economic Impact of the Government Shutdown

The Congressional Budget Office (CBO) has released an assessment detailing the economic consequences of the recent 43-day government shutdown, the longest in US history. The CBO forecasts a 2% growth for the first quarter of 2026. However, the shutdown itself is estimated to have cost the US economy $11 billion. This figure represents a significant financial impact, highlighting the economic disruption caused by the lapse in government funding.

Federal Worker Compensation and Support Programs

A key consequence of the shutdown is the impact on federal workers who went without pay. These workers are legally entitled to receive back pay for the period they worked without compensation.

• Air Traffic Controllers: Specifically mentioned as a group that will receive back pay. Transportation Secretary Shawn Duffy stated that air traffic controllers would receive 70% of their owed back pay within 24 to 48 hours of the government's reopening. The remaining 30% of their back pay is expected to be disbursed in the following weeks.

In addition to back pay for federal employees, the spending bill that ended the shutdown also ensures continued funding for essential programs:

• SNAP (Supplemental Nutrition Assistance Program): Fully funded through September of next year.
• WIC (Women, Infants, and Children): Fully funded through September of next year.

Reopening of Federal Institutions

The shutdown led to the closure of various federal institutions. The Smithsonian Museums are scheduled to reopen by November 17th. The federal government, in general, is now fully funded through January 30th of next year, indicating a resolution to the immediate funding crisis.

Comparison to Past Shutdowns

The 43-day duration of the recent shutdown is notable. It is more than double the length of the next longest government shutdown that occurred under a president not named Trump, underscoring its unprecedented length.

Conclusion

The recent government shutdown, while now resolved with the government fully funded through January 30th of next year, has had a substantial economic cost of $11 billion, according to the CBO. The shutdown also impacted federal workers, who are now set to receive back pay, with specific provisions for air traffic controllers. Essential programs like SNAP and WIC have secured funding through September of next year, and institutions like the Smithsonian Museums are reopening. The length of this shutdown sets a new record, exceeding previous shutdowns by a significant margin.