Press Releases

WASHINGTON, D.C. —Today, House Budget Chairman Jodey Arrington (R-Texas) released the following statement after the Congressional Budget Office (CBO) released new data on the economic impact of the government shutdown:

“Democrats are playing politics, and the American people are paying the price. Even the independent, nonpartisan Congressional Budget Office confirmed the economy will lose 1% in growth because of the Schumer shutdown. For hardworking families that means higher unemployment, lower wages, and less money in their pockets.

"And while Democrats believe 'every day gets better for them,’ the same cannot be said for the American people. In fact, a six-week shutdown means growth would be 1.5 percentage points lower, an eight-week shutdown would reduce growth by 2.0 percentage points, and it only gets worse from there.

Democrats say they shut down the government to help Americans, but this Halloween they’re all trick and no treat. The American people deserve better.”

BACKGROUND

CBO released a letter in response to an inquiry from Chairman Arrington asking how the government shutdown will impact the economy. The letter notes that:

• The shutdown is dragging down economic growth. CBO estimates annualized real GDP will be 1 to 2 percentage points lower in the fourth quarter of 2025, depending on how long the shutdown lasts.
• A four-week shutdown would cost $18 billion in economic output in the fourth quarter of 2025; a six-week shutdown would cost $28 billion; and an eight-week shutdown would cost $39 billion.
• Even after the shutdown ends, CBO projects the economy won’t fully recover. Cumulative losses remain between $7 billion and $14 billion through 2026.
• The shutdown is postponing $24–$48 billion in payments for goods and services and up to $23 billion in paychecks for federal workers, depending on how long the shutdown lasts.