| Title: |
The FY2026 Government Shutdown: Economic Effects. |
| Authors: |
Weinstock, Lida R.; Labonte, Marc |
| Source: |
Congressional Research Service: Report; 1/29/2026, Preceding p1-9, 11p |
| Subject Terms: |
ECONOMIC impact; GOVERNMENT shutdown; SUPPLY & demand; GOVERNMENT aid; REGIONAL economic disparities; EMPLOYMENT furloughs |
| Abstract: |
The article focuses on the economic effects of the federal government shutdown that began on October 1, 2025, and ended on November 12, 2025, due to the enactment of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (P.L. 119-37). The shutdown, which lasted six weeks, led to furloughs of federal employees and impacted both total supply and demand in the economy. While the Congressional Budget Office estimated a cumulative loss of $11 billion in real GDP due to the shutdown, the overall long-term economic impact is expected to be limited, with many effects likely reversing as government operations resumed. The article also highlights that the shutdown disproportionately affected certain regions and sectors, particularly those reliant on federal funding. [Extracted from the article] |
| : |
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| Database: |
Complementary Index |