31 Days, $7 Billion Lost: How the US Government Shutdown Is Crippling The American Economy | Economy News

New Delhi: The United States government shutdown has now stretched past 31 days, making it one of the longest in the country’s history. According to the Congressional Budget Office (CBO), the shutdown has already caused an economic loss of more than USD 7 billion, with more damage expected if the deadlock continues.

Over 1.4 million federal employees have been directly hit — around 670,000 are furloughed without pay, while another 730,000 are working without salaries. This has affected not only government offices but also millions of families, small businesses, and contractors who rely on federal projects.

The CBO warns that if the shutdown continues for another few weeks, total economic losses could reach USD 14 billion. Small businesses are facing payment delays of up to USD 12 billion, while consumer spending has slowed sharply as uncertainty grows.

Essential services are also being affected. Healthcare subsidies under the Affordable Care Act could lapse, pushing premiums up by an estimated 26 PERCENT for around 22 million Americans. Early education programs like Head Start and several nutrition assistance initiatives face disruptions due to the funding freeze.

Economists say the longer the shutdown continues, the greater the risk of permanent economic damage. Delays in government spending and contracting can’t always be recovered later, especially for smaller firms. Business confidence is weakening, and investment decisions are being postponed.

While political negotiations drag on in Washington, ordinary workers, families, and businesses are paying the price. The CBO estimates that if the shutdown stretches beyond eight weeks, America’s economic recovery could lose momentum, threatening jobs and growth well into 2026.