US EditionGovernment shutdown could cost U.S. economy up to $14 billion, CBO says
The shutdown has furloughed about 650,000 workers and could cost up to $14 billion in GDP if it lasts eight weeks, the Congressional Budget Office said.
- On Wednesday, the Congressional Budget Office warned the shutdown could cost the United States economy up to $14 billion, with costs rising the longer it continues.
- The shutdown began on Oct. 1 after Senate Republicans and Democrats failed to reach a short-term funding agreement, with Democratic senators insisting on extending enhanced Affordable Care Act subsidies.
- Using federal agency data, the CBO estimated about 600,000 excepted employees and 650,000 furloughed employees, noting spending will decline as more than a million workers go without pay and military and some federal law enforcement personnel remain paid through funds reallocated by the White House.
- The shutdown, now in its fourth week, will result in the loss of at least $7 billion of real gross domestic product by the end of 2026, and the CBO said negative macroeconomic effects will intensify the longer it lasts.
- After the shutdown, the CBO projects real GDP will temporarily exceed its counterfactual, with declines in four-week, six-week and eight-week scenarios, and federal employees paid back under federal law once reopened.
45 Articles
45 Articles
Brian Moynihan warns the economy risks 'malaise' due to government shutdown, as deals slow and Federal workers pull back on spending
Brian Moynihan cautions that the government shutdown’s ripple effects—from frozen approvals to weak spending—could chill the wider U.S. economy.
Shutdown Burns $7B a Month, CBO Warns Lawmakers
The ongoing federal government shutdown is delivering a $7 billion monthly blow to the US economy, according to a new estimate from the nonpartisan Congressional Budget Office. In a letter to lawmakers, the CBO projected that a four-week shutdown, a mark reached Wednesday, would shrink real GDP by $7 billion,...
The US budget is already blocked for almost a month. Federal authorities are not allowed to spend any more money, thousands of employees are not paid or released. The consequences for the economy are likely to be more dramatic than during the longest shutdown in US history.
Pittsburgh Post-Gazette
Report: Government shutdown will cost the economy up to $14 billion
The U.S. economy will lose between $7 billion and $14 billion due to the federal government shutdown, according to a report released Wednesday by Congress’...
The 28-day US federal government shutdown has already cost the US economy $18 billion, the Congressional Budget Office said today.
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