WASHINGTON, Oct. 30 (Xinhua) -- The ongoing federal government shutdown could cost the U.S. economy between seven billion and 14 billion U.S. dollars, depending on how long it drags on, the Congressional Budget Office (CBO) said Wednesday in a report.
The federal government shutdown is now entering its fifth week and could soon set an all-time record, with little sign of compromise between the Democratic and Republican parties.
The shutdown will delay federal spending and have a negative effect on the economy, according to the CBO.
It estimated the effects under three scenarios: a shutdown that ends after four weeks on Oct. 29, one that ends after six weeks on Nov. 12, and one that ends after eight weeks on Nov. 26.
By the end of 2026, the reduction in hours worked by furloughed federal employees would result in a cumulative loss of real GDP of seven billion dollars in the four-week shutdown scenario, 11 billion dollars in the six-week scenario, and 14 billion dollars in the eight-week scenario, CBO reported.
The office estimates that the annualized quarterly growth rate of real GDP in the fourth quarter of 2025 would be lower by one percentage point in the four-week shutdown scenario, 1.5 percentage points in the six-week scenario, and two percentage points in the eight-week scenario.
On Tuesday, Democratic governors and attorneys general from 25 U.S. states filed a lawsuit against the Trump administration, challenging its conclusion that it lacks the authority to use emergency funds to maintain food assistance for millions of U.S. people next month.
The U.S. Department of Agriculture's website stated that the federal government will not issue food benefits on Nov. 1. ■