The White House’s October 2025 report, Economic Consequences of a Government Shutdown, warns that an extended federal shutdown could significantly damage the U.S. economy. Each week without a resolution is expected to cut 0.2 percentage points from annualized GDP, roughly $15 billion in lost output. Critical programs like WIC, SNAP, and Head Start risk running out of funds, while over 1.9 million federal workers could face furloughs or unpaid work, weakening household spending. Private businesses may be hit by delays in federal services such as loan approvals and exports. The report also highlights risks to financial stability, noting that gaps in economic data could hinder the Federal Reserve’s ability to make informed policy decisions.
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