Over the past month, the impact of the ongoing government shutdown has begun to weigh heavily on businesses that work with the federal government. According to a new report released Thursday by the U.S. Chamber of Commerce, government contractors have collectively lost around $12 billion since the shutdown began on October 1.
The report, which is being sent to members of Congress, highlights that 65,500 small businesses across the country are losing roughly $3 billion each week. These companies provide a range of services — from high-tech manufacturing and office supplies to landscaping — and many rely on government contracts for a large portion of their income.
Neil Bradley, executive vice president of the Chamber of Commerce, said in a letter that while federal employees are guaranteed back pay once the government reopens, contractors have no such protection. “When the government reopens, rarely are contractors made whole,” Bradley wrote, noting that many purchases are permanently lost during shutdowns.
In order for the shutdown to end, there needs to be a "bipartisan" short-term spending bill which is all but bipartisan as of now. The Democratic party is pushing for the inclusion of ACA tax credit extensions before they agree on a deal.
With pressure continuing to build on getting a deal done, it will be interesting to see how the contractors continue to deal with this with no promise that they will get the pay they once agreed upon with another party.
Link to Article: https://www.cnbc.com/2025/10/30/government-shutdown-business-chamber.html
This shows how a government shutdown hurts more than just politics in Washington. It’s real people and small businesses losing money they may never get back. With 65,500 small contractors losing $3 billion every week, maybe there should be some kind of backup plan to help them, just like federal workers get back pay.
ReplyDeleteThis is important to recognize when looking at the impacts of a government shutdown. Oftentimes we just talk about the government employee impact but do not consider the impacts of connected business. I would be curios to learn what the statistics is on these small contractors being close to closing themselves because of losing such a large customer in the government.
ReplyDeleteThe government shutdown is hitting small businesses really hard with billions in losses and no guarantee they’ll get paid. Contractors are stuck in a tough spot since they rely on these deals for income. It’s going to be rough if things don't get sorted out soon.
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