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Shutdown Reaches Day 41 as Economists Warn of Lasting Hit and Congress Moves a Stopgap

A Senate stopgap that would fund the government through January 30 now awaits a House vote.

Overview

  • Now 41 days old, the longest shutdown on record is erasing an estimated $15 billion a week in activity, with the CBO estimating up to $14 billion in lost growth.
  • Economists say reopening could avert a recession, yet the short-term bill risks another funding lapse early next year if lawmakers fail to reach a broader deal.
  • EY-Parthenon’s Gregory Daco estimates as much as 20% of the shutdown’s economic hit could be permanent for services, and a D.C. restaurant reported a 15% revenue drop.
  • SNAP uncertainty eased after the administration appealed a court order and the USDA then told states benefits would be paid.
  • The Federal Reserve faces murkier data as delayed spending likely shows up in early 2026, and consumer sentiment has fallen to its weakest since June 2022.