How much money will the US government lose due to the shutdown? Details revealed
Posted on: Oct 02, 2025 09:24 IST | Posted by: Hindustantimes
chairperson Donald ruff’s economical team up has warned in a memorandum that a long government shutdown could have major financial fallout. The White House document lays out the risks in detail, according to POLITICO report.
The Council of Economic Advisers estimates the shutdown would cost the US $15 billion in gross domestic product for every week it continues. If it lasts a month, an extra 43,000 people could lose their jobs. That figure does not include the 1.9 million federal civilian workers already affected. About 80 percent of them are in the Washington area, either furloughed or working without pay.
The memo will be shared with Republican lawmakers on Capitol Hill to shape the party’s message. At the center of the fight is funding for Affordable Care Act subsidies. The administration has argued, incorrectly, that this money benefits undocumented immigrants.
“The very real economic consequences of a prolonged government shutdown are entirely on Senate Democrats who are holding the federal government, economy, and country hostage to give illegal immigrants free health care,” White House spokesperson Kush Desai said.
The White House is pushing Republicans at all levels to stick to a unified response and direct blame at Democrats. Still, recent polls show voters currently fault Republicans more, though many also blame both parties.
The warning comes as economic pressures mount from other areas as well. ADP data released Wednesday showed the US. Lost 32,000 private sector jobs in September, in part linked to Trump’s tariff policies.
The Council memo, four pages long, says a monthlong shutdown could cut consumer spending by $30 billion. Half would come from lost income to federal workers, the rest from related industries. It cites research from Goldman Sachs, Fiserv, and the Federal Reserve.
“CEA analysis indicates that the shutdown may have wide-ranging economic effects that reduce American prospects through lower growth, higher unemployment, as well as disruptions to social security, air travel, and nutritional support to women with infant children,” the memo states.
Also Read: What stays open and what closes during a government shutdown: Social security, medicare, USPS & more
The document lists specific fallout: WIC food assistance could run out of money in October, Social Security and Medicare call centers may face long delays, and some Head Start programs may lose funding. TSA officers and air traffic controllers will still report for duty, but the memo says past shutdowns saw absenteeism triple, raising the risk of flight delays nationwide.
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