Congressional Budget Office Says Government Shutdown Cost $11 Billion

According to the Congressional Budget Office, the 35-day federal government shutdown cost the economy $11 billion as a mix of lost output from federal workers, delayed government spending and reduced demand.

The report estimated that $3 billion, or 0.1 percent, was lost in economic activity during the fourth quarter of 2018 as a result of the governmental stalemate. The CBO estimated that an additional $8 billion, or 0.2 percent was lost during the first quarter of 2019.

“Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business,” the report said. “Some of those private-sector entities will never recoup that lost income.”

Trump: “Opportunity for All Parties to Work Together”

U.S. President Donald Trump announced last Friday that a deal was reached with congressional leaders to reopen the government temporarily, ending a shutdown that was in its 35th day.

At a White House press conference, Trump said he hopes to sign the latest measure that includes restarting government operations through Feb. 15. Trump previously pledged not to sign spending legislation unless it included a $5.7 billion proposal for a border wall.

As part of this latest deal, Trump said a conference committee would put together a Department of Homeland Security appropriations bill.