U.S. Shutdown Threatens to Drain $15 Billion Weekly from Economy

Visitors sit on the steps of the Smithsonian's National Air and Space Museum which has been closed due to the continuing U.S. government shutdown in Washington, D.C., U.S., October 13, 2025. 

The ongoing U.S. government shutdown is rapidly escalating into a major economic threat, with the Treasury Department warning that the standoff could cost the economy as much as $15 billion per week.

Treasury Secretary Scott Bessent cautioned that the shutdown, now stretching into its third week, is “starting to cut into muscle” as federal workers miss paychecks, agencies suspend services, and businesses dependent on government contracts face mounting uncertainty.

The shutdown began on October 1, 2025, after Congress failed to pass a funding bill for the new fiscal year. Roughly 900,000 federal employees have been furloughed, while another 700,000 continue to work without pay. The ripple effects are already being felt across the economy, from delayed loans and permits to shuttered museums and disrupted travel.

Economists warn that if the impasse continues, the damage could extend beyond lost wages and services, potentially slowing GDP growth and undermining consumer confidence. With both parties entrenched in a bitter funding dispute, the path to reopening the government remains uncertain.

The Treasury’s stark estimate underscores the urgency of a resolution: every week of gridlock risks billions in lost productivity, stalled investment, and growing financial strain for American families.