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Economic Effects of Government Shutdowns (CRS Report for Congress)

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Release Date Sept. 22, 2023
Report Number IN12248
Report Type Insight
Authors Lida R. Weinstock; Marc Labonte
Source Agency Congressional Research Service
Summary:

If Congress allows appropriations to lapse on October 1, a federal government shutdown would begin. Government shutdowns have direct and indirect impacts on the economy, the severity of which depend largely on the shutdown’s length and scope. This Insight discusses the economic effects of shutdowns, including effects on output, employment, and government spending. For information on the impact of a shutdown on government operations, see CRS Report R47693, Government Shutdowns and Executive Branch Operations: Frequently Asked Questions (FAQ), coordinated by Taylor N. Riccard.
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