Additional Coverage:
- Two federal agencies gutted hardest in the government shutdown and the eye-watering cost (themirror.com)
Government Shutdown Leads to Mass Furloughs, Billions in Economic Losses
The ongoing federal government shutdown, now the eleventh since 1976 and the third under the current administration, is poised to exact a significant financial toll on the nation, with estimates suggesting a potential cost of up to $400 million daily. Thousands of federal employees face furloughs, with critical agencies like the Environmental Protection Agency (EPA) and the Department of Education (DoE) experiencing the most severe staffing reductions.
The fiscal impasse, which began Wednesday at 12:01 a.m. E.T., could see an estimated 750,000 federal employees furloughed each day.
Beyond the immediate impact on workers, the Congressional Budget Office projects a daily economic loss of up to $400 million, while other reports indicate the U.S. economy could lose $15 billion in gross domestic product for every week the shutdown persists. Concerns are also mounting over potential threats of mass firings and “irreversible” program cuts.
Agencies Grapple with Staffing Reductions
Data indicates that the EPA and DoE are facing the most profound staffing cuts, with over 85% of their federal employees now furloughed. Other significant declines in workforce can be observed at the Commerce Department (81% furloughed) and the Labor Department (76%).
The Agriculture Department is another agency heavily impacted, presenting a notable challenge for a key constituency. Thousands of its Farm Service Agency offices across the U.S., which provide vital services such as loans to producers, have been temporarily closed, operating only for “emergency scenarios.” While “essential” workers continue to report without pay, the majority of employees have had their work suspended entirely.
Historical Context: Echoes of Past Impasses
The current situation evokes a sense of déjà vu in Washington, recalling the longest government shutdown in U.S. history, which occurred during the previous administration. That 35-day impasse, from December 2018 to January 2019, furloughed an estimated 300,000 federal workers and cost the country an estimated $3 billion in lost GDP. During that period, approximately $18 billion in federal spending was temporarily withheld.
Government shutdowns, where federal agencies cease non-essential operations due to a lack of congressional agreement on a budget, are a relatively recent phenomenon in U.S. history, becoming common practice only since the early 1980s. These events typically occur when the government’s fiscal year begins on October 1st without an approved spending plan in place.