Government Shutdown Financial Impact
The ongoing government shutdown is reportedly costing about $400 million each day for federal employees who aren’t working. As of Friday, this accumulates to a staggering $1.2 billion, according to estimates from the Congressional Budget Office (CBO) highlighted by Senator Joni Ernst, a Republican from Iowa.
Ernst remarked, “This closure caused by Schumer means taxpayers are footing another $400 million today. These political antics surrounding healthcare for undocumented immigrants have turned into an expensive farce. It’s time to end this and get back to work serving veterans, families, and hardworking Americans.”
Under legislation from 2019, furloughed employees will receive back pay once a funding agreement is finalized and the shutdown concludes. The CBO estimates that the daily costs for these employees amount to around $400 million, totaling $1.2 billion as of Friday.
The White House has indicated that potential layoffs could affect “thousands” of employees, exacerbating the situation.
Data drawn from the CBO—and based largely on a prior five-week partial shutdown during the Trump administration—suggests that about 750,000 employees could be impacted every day. This information was requested by Iowa Republicans as they sought clarity on the shutdown costs.
The current calculations indicate that while there are approximately 750,000 federal employees counted as inactive, the numbers could vary as some agencies might be employing more staff while others consider those previously furloughed.
As of early Wednesday, the government was officially shut down after senators were unable to reach an agreement on the budget. The House had approved a temporary funding extension aimed at keeping the government running until November 21.
Republicans, including members of the Trump administration, have stated they believe the shutdown responsibility rests with Democrats, particularly over controversies surrounding healthcare for undocumented immigrants. Democrats, on the other hand, have countered that they do not support this funding and have shifted the blame back to Republican lawmakers.
Press Secretary Kush Desai criticized Democrats for being “not serious” regarding the CBO reports during a media briefing. He further pointed out the high costs associated with the shutdown, stating, “Democrats want to allocate $200 billion on free healthcare for undocumented immigrants, and in doing so, they’re wasting $400 million a day on federal employees not working.”
Trump has mentioned that while he doesn’t favor a shutdown, there might be opportunities for beneficial changes if it occurs. He stated, “There are a lot of things we can cut out that we don’t need, but the ongoing Democratic agenda keeps pushing boundaries we don’t support.”
During the shutdown, the administration is preparing for potential cuts across various agencies, and Trump has gathered management teams to review which departments and programs may face reductions.
Leavitt, the White House Press Secretary, has indicated that significant layoffs are likely. “We’re talking about possibly thousands of employees. It’s an unfortunate situation, but it’s something management and budget offices need to address immediately.”
