The U.S. economy will lose between $7 billion and $14 billion due to the federal government shutdown, according to a new report released Wednesday by Congress' nonpartisan bookkeeper.
Federal workers missing paychecks and the interruption of food benefits for low-income Americans are expected to temporarily lower gross domestic product by 1 to 2 percentage points in the fourth quarter of 2025, the Congressional Budget Office (CBO) reported.
Output is expected to spring back once the government reopens and services resume, reversing most of the economic slowdown. But the hours lost by furloughed federal workers would permanently impact real GDP — an effect that would get worse the longer the shutdown drags on.
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