TL;DR: Treasury Secretary Scott Bessent initially said the U.S. government shutdown could cost $15 billion per day, but officials later corrected the estimate to $15 billion per week. The shutdown, now in its third week, is affecting millions of workers, delaying economic activity, and reducing projected GDP growth.
Words by : @LeadingReport
Key Points
What Happened
- On October 15, 2025, Treasury Secretary Scott Bessent stated the federal government shutdown could cost the U.S. economy "up to $15 billion a day."
- The Treasury Department later clarified that Bessent had misspoken; the correct estimate is $15 billion per week, based on a White House Council of Economic Advisers report.
Economic Impact
- The shutdown, which began October 1, 2025, has halted or delayed federal services, suspended small business loans, and paused infrastructure projects.
- Over 750,000 federal employees are furloughed daily, with others working without pay.
- Oxford Economics estimates the shutdown is reducing GDP growth by 0.1 to 0.2 percentage points per week, with full-quarter losses potentially reaching 1.2 to 2.4 points.
- Tourism losses are estimated at $1 billion per week, with closures of parks and federal sites.
- Small business loan approvals (around $860 million weekly) are paused, along with delays in mortgage and flood insurance processing.
Bessent’s Remarks
- Bessent said the shutdown is "starting to cut into muscle" of the economy and called for Democrats to "be heroes" and support Republican funding bills.
- He added: "The only thing slowing us down here is this government shutdown."
- Bessent highlighted ongoing strength in AI and tech investment, saying, “I think we can be in a period like the late 1800s… or the 1990s…”
Political Context
- The shutdown stems from a budget impasse over Affordable Care Act subsidies.
- As of October 19 (Day 19), the Senate has rejected ten Republican stopgap bills.
- Republicans blame Democrats for blocking bills; Democrats insist on healthcare protections.
- A federal judge temporarily blocked Trump administration firings of federal workers on October 15.
Outlook
- No new votes are scheduled before October 20.
- Analysts warn of growing economic damage and falling consumer confidence if the shutdown continues into November.
- There is no updated estimate beyond the corrected $15 billion per week figure.