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Home World News

Shutdown costs US $3b as govt reopens

29th January 2019
in World News
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Shutdown costs US $3b as govt reopens

Demonstrators protest the ongoing government shutdown at a rally in Federal Plaza in Chicago, Jan. 24, 2019. Before it ended on Friday with a deal between the Trump administration and congressional leaders, the partial shuttering of the government had reordered American life. (Laura McDermott/The New York Times)

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The United States economy was expected to lose $3 billion from the partial federal government shutdown over President Donald Trump’s demand for border wall funding, congressional researchers said yesterday as 800,000 federal employees returned to work after a 35-day unpaid furlough.

Trump said he would be willing to shut down the government again if lawmakers do not reach a deal he finds acceptable on border security. On Sunday, he expressed skepticism such an deal could be made, putting the odds at 50-50.

The nonpartisan Congressional Budget Office (CBO) said the cost of the shutdown will make the U.S. economy 0.02 percent smaller than expected in 2019. More significant effects will be felt by individual businesses and workers, particularly those who went without pay.

Overall, the U.S. economy lost about $11 billion during the five-week period, CBO said. However, CBO expects $8 billion to be recovered as the government reopens and employees receive back pay.

The longest shutdown in U.S. history ended on Friday when Trump and Congress agreed to temporary government funding without money for his wall as the effects of the shutdown intensified across the country.

Republican Trump had demanded that legislation to fund the government contain $5.7 billion for his long-promised wall along the U.S.-Mexico border. He says it is necessary to stop illegal immigration, human trafficking and drug smuggling, while Democrats call it costly, inefficient and immoral.

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