October 17, 2025

Chairman Arrington Statement on CBO Letter Confirming Government Shutdown Will Harm the Economy

WASHINGTON, D.C. —House Budget Chairman Jodey Arrington (R-Texas) today released the following statement after the Congressional Budget Office (CBO) said that the ongoing government shutdown will have negative effects on the U.S. economy that will increase the longer the shutdown continues:

“The nonpartisan, independent Congressional Budget Office just confirmed the Democrat shutdown is increasing unemployment, reducing consumer spending, diminishing private-sector income, and stifling overall economic growth. Simply put, Leader Schumer and the Democrats are playing partisan games at the expense of the American people’s livelihoods.”

“After the House passed a clean continuing resolution, Democrats decided to shut the government down, holding our troops and vulnerable Americans hostage for 17 days over absurd demands. Democrats are demanding $1.5 trillion in new spending on woke and wasteful policies—health care for illegal immigrants, DEI and Green New Deal programs, and welfare without work for able-bodied adults.

“It’s time for Democrats to put the country first, do the right thing, and end the shutdown.”

BACKGROUND

The CBO released a letter in response to an inquiry from Chairman Arrington asking how the government shutdown will impact the economy.

In response, the CBO said:

  • The longer the government shutdown continues, the more severe its negative impact on the economy will be, with some effects lingering even after the government reopens.

  • The unemployment rate will rise temporarily as federal operations and paychecks are paused.

  • Consumer spending and private-sector income will decline until the government reopens.

  • Real GDP will take a temporary hit.

  • Delays or cancellations of federal economic data will leave the Federal Reserve with less information for key monetary policy decisions.

  • Some businesses will be unable to obtain necessary federal permits, certifications, or loans.

  • The tourism and travel industry will suffer economic losses.