A federal government shutdown could cost the economy up to $14 billion, depending on its length, the Congressional Budget Office announced Wednesday.
The government shutdown, now in its fourth week, will result in at least $7 billion in lost gross domestic product by the end of 2026 as furloughed federal employees work fewer weeks, the CBO said.
CBO Director Philip Swagel said in a letter to House Budget Chairman Jodi Arrington, R-Texas, that the longer the government shutdown lasts, the higher the costs will be.
Swagel said a six-week shutdown would cost the economy $11 billion and an eight-week shutdown would cost the economy $14 billion.
Even as the effects of the government shutdown become more painful for Americans, senators remain pessimistic about the likelihood of reaching a bipartisan agreement to reopen the government.
Sen. Thom Tillis, RN.C., told NBC News on Wednesday that he sees no evidence of a breakthrough.
Meanwhile, Sen. Ron Wyden, D-Ore., accused the White House of closing the door on negotiations to break the impasse.
The U.S. Department of Agriculture announced that payments for food assistance, known as SNAP, will stop on November 1 if the government shutdown is not resolved. More than 20 states are suing the Trump administration to preserve SNAP benefits.
The government shutdown began Oct. 1 after Senate Republicans and Democrats failed to reach a short-term funding agreement to keep government agencies open.
Democratic senators are insisting that Republicans agree to expand health insurance subsidies in the Affordable Care Act before voting on funding to reopen the government.
