Government Shutdown Impact on Travel: $1 Billion Lost Every Week
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Diverging Reports Breakdown
What is a government shutdown? How would it impact Oklahoma? Here’s what to know
The federal government has partially closed down 21 times for a total of 162 days since 1977. During a shutdown, all federal agencies and services that officials do not deem “essential” must stop working. Essential services include the U.S. Postal Service, Medicare, Social Security services, and air traffic control, such as the TSA and FAA. The longest government shutdown lasted 35 days; it was the third shutdown to occur during the Trump administration.. The Office of Management and Budget asked federal agencies on Sept. 24 to draft plans for permanent layoffs if the government shutdown continues into October. The government shutdown could last as long as a month. It could also last as little as a few days, according to the Center for a Responsible Federal Budget, a nonprofit that studies federal fiscal policy..
Republicans hold a 219-212 majority in the House of Representatives and a 53-47 edge in the Senate, which usually requires 60 votes to pass bills, meaning that seven Democrats would need to support the legislation. In short, Trump doesn’t have the votes, at least not yet.
Here’s what you need to know about a government shutdown and what happens during one.
What offices are closed during a shutdown?
During a government shutdown, all federal agencies and services that officials do not deem “essential” must stop working. These essential workers include the U.S. Postal Service, Medicare, Social Security services, and air traffic control, such as the TSA and FAA.
Essential services include the U.S. Postal Service, Medicare and Social Security services and air-traffic control. This means your mail will still be delivered by USPS and Social Security checks should be included in those deliveries.
“Non-essential” work, however, must pause, which affects thousands of federal employees and millions of Americans. National parks closed during past shutdowns or were kept open with state help – but with fewer services like trash pickup.
Will Social Security checks go out?
The Social Security Administration is projected to pay out $1.6 trillion to 72 million beneficiaries this year, making it a vital economic lifeline for much of the country.
A shutdown won’t disrupt those payments.
Social Security is a mandatory spending program that is not subject to annual appropriations. However, staffing and some services could be impacted if they have a discretionary spending component, according to the Committee for a Responsible Budget, a nonprofit that studies federal fiscal policy.
Will federal workers get paid?
Traditionally, federal workers get paid after being furloughed temporarily for shutdowns. But the Office of Management and Budget asked federal agencies on Sept. 24 to draft plans for permanent layoffs.
“Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown,” the memo said.
Senate Minority Leader Chuck Schumer, D-N.Y., said the threat was meant to scare workers.
Is airline travel through FAA and TSA affected by a shutdown?
Air travel continues during a shutdown. The Federal Aviation Administration’s air-traffic control system and the Transportation Security Administration are considered essential.
But workers don’t get paid during the shutdown, which can lead to delays when workers don’t show up for shifts. Geoff Freeman, CEO of the U.S. Travel Association, said an estimated $1 billion per week is lost to the travel economy due to disruptions in air and rail travel, and closures of parks and museums.
“The consequences of inaction are immediate and severe,” Freeman said in a letter Sept. 25 to congressional leaders.
During the shutdown in December 2018 and January 2019, some TSA checkpoints were closed and travelers faced longer lines when agents didn’t report to work, according to the Committee for a Responsible Federal Budget. The absence of 10 controllers temporarily halted flights at New York’s LaGuardia airport and caused delays at others.
How long could the shutdown last?
The federal government has partially closed down 21 times for a total of 162 days since 1977. That’s an average of nearly eight days per shutdown.
The longest government shutdown lasted 35 days. Spanning from Dec. 22, 2018, to Jan. 25, 2019, it is also the most recent federal shutdown in U.S. history.
It was the third federal shutdown to occur during the Trump administration; the first lasted three days in January 2018, and the second lasted only a few hours in February 2018.
$1 Billion A Week: How A Government Shutdown Would Hit U.S. Travel And National Parks
The U.S. Travel Association sent a letter urging Congress to act quickly to keep the government open. The Association warned that a shutdown would be a “wholly preventable” blow to the travel industry. A shutdown would also disrupt air and rail travel and lead to longer Transportation Security Administration (TSA) lines, flight delays and cancellations. National parks could close or fall into disrepair, museums and federally owned attractions would shutter and visitor experiences would diminish. The worst-case scenario could include increased vandalism, poaching, looting of battlefield artifacts and “pothunting” of archaeological sites. The National Park Service (NPS) sought $2.1 billion for construction, activities and historic preservation in its 2026 budget request. The NPS has lost 24% of its permanent staff, and critical maintenance funding is set to expire later this year. In February, approximately 1,000 NPS employees, including probationary workers in Yosemite National Park, were terminated as part of a broad federal reduction-in-force.
A looming U.S. government shutdown could deliver a devastating blow to the nation’s travel economy, costing an estimated $1 billion every week, according to a new warning from the U.S. Travel Association.
Yesterday, the U.S. Travel Association sent a letter urging Congress to act quickly to keep the government open.
The Association warned that a shutdown would be a “wholly preventable” blow to the travel industry. However, if it were to happen, the strain would be too much for an already overextended federal travel workforce.
A shutdown would also disrupt air and rail travel and lead to longer Transportation Security Administration (TSA) lines, flight delays and cancellations.
The Association also projected that national parks could close or fall into disrepair, museums and federally owned attractions would shutter and visitor experiences would diminish.
A recent Ipsos survey, as quoted in the announcement, found that 60% of Americans would cancel or avoid air travel if the government were to shut down, which would likely cause a ripple effect through local economies across the country.
What Is The Congress Voting On?
In its 2026 budget request, the National Park Service (NPS) sought $2.1 billion, including $99.5 million for construction, $12 million for activities and $11 million for historic preservation.
This request was already significantly less than the $3.3 billion NPS received under the 2025 continuing resolution.
2025 National Parks Crisis At A Glance
In February, approximately 1,000 NPS employees, including probationary workers in Yosemite National Park, were terminated as part of a broad federal reduction-in-force.
It prompted protests at iconic sites, such as El Capitan, where climbers displayed an upside-down American flag in distress, drawing attention to a national park system they said was in crisis.
In March, President Donald Trump released an executive order named ‘Restoring Truth and Sanity to American History’ to remove signs and displays about the painful chapters of U.S. history.
President Donald Trump signs executive orders in the Oval Office of the White House on January 20, 2025 in Washington, DC. Getty Images
By April, as many as 2,400 NPS employees considered leaving under a new federal offer.
In May, the NPS suspended air-quality monitoring programs across national parks by halting contractor work, which threatened environmental oversight at dozens of sites, as reported by The Washington Post.
In July, the Trump administration issued another executive order named ‘Making America Beautiful Again by Improving Our National Parks’, and proposed raising park entrance fees. A plan critics said would harm visitors without addressing deeper funding shortages.
Since January, the NPS has lost 24% of its permanent staff, and critical maintenance funding is set to expire later this year.
In response, staff at Yosemite, Sequoia and Kings Canyon National Parks voted overwhelmingly (97%) to unionize. Now, the National Federation of Federal Employees represents a coalition of over 600 staff members.
What Will Happen To National Parks Past The October Deadline
Bill Wade, executive director at Association of National Park Rangers (ANPR) explained in an email interview that if Congress does not pass a budget by October 1, two scenarios are possible: either national parks would be closed or they would remain open without proper funding.
“ANPR and other like-minded organizations have sent a letter to Department of the Interior Secretary Doug Burgum urging him to close the parks,” said Wade. “This is the most effective way to protect visitors and the park resources since under this scenario, visitors would not be allowed to legally enter national parks during the shutdown,” he added.
If the parks to remain open Wade explained that “only “essential” employees would continue to work. All other (nonessential) employees would be furloughed and receive no pay.”
What would that mean for visitors? “Anyone would be allowed to enter, but would be at risk of slow or inadequate response to emergencies such as accidents, search and rescue,” Wade noted.
He expects entrance stations and visitor centers to shut down, ranger-led programs to be suspended, and campgrounds and picnic areas to close. Routine maintenance such as trash collection and restroom cleaning would also come to a halt.
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Volunteers help cleaning up Yosemite National Park during a partial government shutdown in 2019. Hearst Newspapers via Getty Images
He also warned that without staff oversight, the worst-case scenario could include increased vandalism, poaching, looting of battlefield artifacts, and “pothunting” in archaeological sites.
“Obviously, we hope there is no shutdown. If there is, we hope parks can close to protect visitors and the resources of the parks that this nation’s citizens have invested in for over 150 years and have revered as the world’s premier national park system,” he said.
Latest news: Extendam buys in Portugal; shutdown impact; Grupo Hotusa adds 9 in Spain
Extendam, Highgate acquire the 194-key Hilton Porto Gaia hotel in Portugal. Grupo Hotusa has acquired a portfolio of nine hotels in Spain for €250 million. CG Developers is partnering with Marriott International to launch the first JW Marriott Residence in Dubai. Chatham Lodging Trust has entered into a new credit agreement that increases capacity under a senior unsecured revolving loan from $260 million to $300 million and increases total capacity under its senior un secured term loan from £140 million to £200 million. The new facility bears interest pursuant to a leveraged-based pricing grid over the applicable adjusted term SOFR, ranging from 1.5% to 2.25% for the revolving loan (currently 1.6%) and 1.45% to2.2% in the term loan (which represents a 0.1% decrease from the prior facility).
Extendam, Highgate acquire in Portugal. Paris-based private equity firm Extendam and Highgate formed a joint venture to acquire the 194-key Hilton Porto Gaia hotel in Vila Nova de Gaia, Portugal, for an undisclosed amount from Sabersal. The hotel opened in 2021 and is Extendam’s first collaboration with Highgate.
USTA says shutdown could cost a billion per week. The U.S. Travel Association stated that a government shutdown would have a significant impact on the travel economy and the traveling public, warning that the travel economy is at risk of losing $1 billion a week due to disruptions in air and rail travel, as well as the closure of national parks and museums. A survey from Ipsos shows that a large majority of Americans believe a U.S. government shutdown will cause economic harm and disrupt air travel. According to the survey, 60% of Americans said they would cancel or avoid air trips in the event of a shutdown, and 81% of Americans agree that government shutdowns hurt the economy.
Grupo Hotusa acquires 9 in Spain. Barcelona-based Grupo Hotusa has acquired a portfolio of nine hotels in Spain, previously owned by the Pygmalion and CBRE Investment Management funds and operated by the Spain-based Silken for €250 million. The portfolio includes around 1,650 rooms in cities such as Seville, Madrid, Bilbao and San Sebastián, and will become part of the portfolio of the company that owns the Eurostars hotel chain. In July, it was reported that New York City-based LCN Capital Partners had reached an agreement to acquire these assets for €225 million, but the transaction ultimately fell through.
HCW adds management vertical. Phoenix-based HCW is launching a third-party hotel management division. With a portfolio of 2,000-plus rooms and more than $2.75 billion in managed asset value, HCW actively oversees $136-million-plus in annual hotel revenue.
CG adding JW residences in Dubai. CG Developers, the real estate arm of Kathmandu, Nepal-based CG Corp Global, is partnering with Marriott International to launch the first JW Marriott Residence in Dubai. The 115-key residential project will be set in the Dubai Islands. CG Corp Global’s broader collaboration with Marriott also includes converting the Wellness Resort, The Farm at San Benito, into the first Autograph Collection in the Philippines. Another agreement includes the founding deal for Marriott’s new global collection brand Series by Marriott, with plans to affiliate CG Hospitality’s Fern Hotels.
New credit facility for Chatham. Palm Beach, Florida-based REIT Chatham Lodging Trust has entered into a new credit agreement that increases total capacity under a senior unsecured revolving loan from $260 million to $300 million and increases total capacity under its senior unsecured term loan from $140 million to $200 million. The newly enhanced $500 million credit facility can be increased up to $650 million through an accordion feature. The $500 million credit facility matures in September 2029. The facility also includes options to extend the maturity by 12 months, subject to customary conditions. The new facility bears interest pursuant to a leveraged-based pricing grid over the applicable adjusted term SOFR, ranging from 1.5% to 2.25% for the revolving loan (currently 1.6%) and 1.45% to 2.2% for the term loan (which represents a 0.1% decrease from the prior facility).
Here’s How A Government Shutdown Could Disrupt Travel Next Week
The U.S. Travel Association sent a letter to Congress Thursday, urging lawmakers to avoid a “wholly preventable blow” to America’s $1.3 trillion travel economy. The projected losses would be on top of a projected decline of $29 billion in visitor spending in 2025 due to a combination of fewer international visitors and sagging domestic travel demand in a weaker economy. Nearly nine in 10 Americans (86%) believe a shutdown would inconvenience air travelers and 60% say they would consequently avoid flying, according to an Ipsos survey commissioned by the Travel Association this month. During the 2013 government shutdown, the 16-day closure of national parks and monuments resulted in roughly $500 million in lost tourism dollars, a report by the Office of Management and Budget said. The economic hit of closures tends to be felt most sharply by local communities surrounding national parks. The federal government is funded through Tuesday, Sept. 30, and without a stopgap budget, many operations would be halted on Oct. 1.
Key Facts
The U.S. travel economy risks losing $1 billion a week in a government shutdown due to disruptions in air and rail travel and the closure of national parks and museums, according to Tourism Economics, a division of Oxford Economics. The U.S. Travel Association sent a letter to Congress Thursday, urging lawmakers to avoid a “wholly preventable blow” to America’s $1.3 trillion travel economy. The projected losses during a shutdown would be on top of a projected decline of $29 billion in visitor spending in 2025 due to a combination of fewer international visitors and sagging domestic travel demand in a weaker economy. The federal government is funded through Tuesday, Sept. 30, and without a stopgap budget, many operations would be halted on Oct. 1. Prediction markets Kalshi and Polymarket project a 66% and 69% chance of a shutdown, respectively.
How Would A Government Shutdown Impact Air Travelers?
It depends how long the stoppage lasts. Historically, shutdowns of a few days have had minimal impact, while longer lapses have greatly disrupted the U.S. air travel system. Nearly nine in 10 Americans (86%) believe a shutdown would inconvenience air travelers and 60% say they would consequently avoid flying, according to an Ipsos survey commissioned by the U.S. Travel Association this month. While Federal Aviation Administration (FAA) employees, including air traffic controllers, and Transportation Security Administration (TSA) officers are designated as essential government workers and would therefore be required to work during a shutdown, they would do so without immediate pay, which has traditionally tanked morale and led to absenteeism and other forms of protest. As the 2019 government shutdown dragged on, for example, hundreds of TSA screeners called in sick, leading to flight delays and longer screening lines. A shutdown would also hamper the Federal Aviation Administration (FAA)’s much-hyped “hiring supercharge” of air traffic controllers, which is already plagued by a shortage of training instructors. Finally, a shutdown would temporarily close the FAA’s Aircraft Registry, which would delay aircraft purchases and deliveries. During the 2013 government shutdown, the General Aviation Manufacturers Association reported delays of more than 150 aircraft deliveries valued at $1.9 billion. The FAA needed months to clear the backlog of delayed registrations.
How Would A Government Shutdown Impact National Parks?
During past government shutdowns, the majority of national parks have closed though state governments have sometimes stepped up with funding. During the 2013 government shutdown, the 16-day closure of national parks and monuments resulted in roughly $500 million in lost tourism dollars, according to a report by the Office of Management and Budget, “even after taking into account the 13 parks that were re-opened using state funds after more than a week of being shut down.” In 2018 and 2019, state funding allowed some national parks to remain open, but services such as trash collection and restrooms were often unavailable. The economic hit of closures tends to be felt most sharply by local communities surrounding national parks.
Why Is U.s. Tourism Faltering In 2025?
It has been a disappointing year for the United States tourism industry, which entered 2025 expecting an increase in both travel demand and visitor spending. But inbound travel from international visitors is significantly down in 2025 due largely to geopolitical tensions that spawned an eight-month travel boycott by Canadian tourists and a summertime drop in lucrative Indian tourists, as U.S. President Donald Trump and Indian Prime Minister Narendra Modi sparred over tariffs, Russian oil and who should get credit for a ceasefire between India and Pakistan. Reflecting the overall K-shaped economy, U.S. domestic travel demand is starkly bifurcated, with wealthier Americans generally maintaining their travel plans while lower-income travelers pull back on spending—a pattern seen across the travel landscape, from airlines to hotels to theme parks, and one that is expected to persist beyond the end of the year. “Even though 2026 is going to be better than this year, it’s really still going to be a very bifurcated economy,” Ryan Sweet, chief U.S. economist at Oxford Economics, said this week on a Zoom call with members of the travel industry.
Crucial Quote
“High-income households are going to do very, very well. Lower-income households are going to remain under a lot of pressure,” Sweet said in the call with the travel industry this week.
What We Don’t Know
Whether Congress will pass spending bills that would keep the government open. Senate Democrats blocked a Republican bill that excluded enhanced Affordable Care Act subsidies and did not restore crucial Medicaid funds. President Trump cancelled a meeting Thursday with Democratic leaders Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, claiming no meeting “could possibly be productive.”
Further Reading
White House Budget Office Threatens Mass Firings If Government Shutdown Happens (Forbes)
U.S. Tourism Will Lose Up To $29 Billion As Visitors Plummet Amid Trump Policies (Forbes)
The federal government could shut down soon. Here’s what you need to know
Congress must provide funding for many federal departments and functions every fiscal year, which begins on October 1. If lawmakers fail to pass a spending package for the full year or extend funding for a shorter period, then many agencies and activities must shutter until Congress appropriates more money. Since 1980, there have been 14 government shutdowns, according to the Bipartisan Policy Center. The most recent one occurred during his first term, starting in late December 2018 and ending in late January 2019 and was the longest on record. In 2013, an estimated 8 million recreation visits and $414 million were lost during the 16-day shutdown, citing the National Parks Conservation Association. The impact on national parks has differed greatly in recent shutdowns. In the most recent shutdown, students had trouble getting needed tax documents from the Internal Revenue Service to get financial aid for the spring semester, and the US Department of Agriculture warned that it could only guarantee to provide food stamp benefits through February. In 2019, many national parks are expected to remain open.
Although Republicans control Capitol Hill and the White House, they need at least seven Democrats in the Senate to join them to pass a spending package under the chamber’s rules. Senate Minority Leader Chuck Schumer, however, is demanding any funding bill contain an extension of the enhanced Affordable Care Act premium subsidies, along with several other items, to get his party’s support. GOP leaders want an extension of funding for seven weeks, with additional money for security for the legislative, executive and judicial branches.
President Donald Trump does not appear interested in working out a compromise. He canceled a meeting this week with Democratic leaders and said Thursday that their demands were “totally unreasonable.”
If the impasse is not resolved, the coming government shutdown could be unlike any other in recent memory. While no two shutdowns are exactly the same, Trump and the White House Office of Management and Budget have already signaled that they are willing to use a totally different playbook — urging agencies to downsize workers in programs whose funding has lapsed and which don’t align with Trump’s priorities.
Trump is no stranger to government shutdowns. The most recent one occurred during his first term, starting in late December 2018 and ending in late January 2019 and was the longest on record.
Here’s what we know about the looming government shutdown:
What is a government shutdown?
Congress must provide funding for many federal departments and functions every fiscal year, which begins on October 1. If lawmakers fail to pass a spending package for the full year or extend funding for a shorter period, known as a continuing resolution, then many agencies and activities must shutter until Congress appropriates more money.
Lawmakers have yet to pass through both chambers any of the 12 appropriations bills that make up the federal discretionary spending budget. So the coming shutdown would be considered a full shutdown.
During prior impasses, Congress approved annual funding for certain agencies, which allowed them to continue operating while other federal departments went dark. That situation is known as a partial shutdown.
Since 1980, there have been 14 government shutdowns, according to the Bipartisan Policy Center.
What is the shutdown deadline?
The shutdown will begin on October 1, first thing Wednesday morning, if Congress doesn’t act before that.
What programs and payments will stop?
Every government shutdown differs somewhat, but typically functions that are critical to the protection of lives and property are deemed essential and remain open. Agencies file what are known as contingency plans that detail what operations will continue and how many employees will remain on the job, many of them without pay.
However, in an unusual move, OMB this time is not posting agencies’ shutdown contingency plans on its website. Instead, the plans are hosted only on each agency’s site — making it harder to assess how the Trump administration will handle the shutdown and which activities it will deem essential. (OMB noted in a memo earlier this week that it had not yet received updated contingency plans from every agency.)
Previous shutdowns have stalled food inspections; canceled immigration hearings; and delayed some federal lending to homebuyers and small businesses, among other impacts.
In the most recent shutdown, students had trouble getting needed tax documents from the Internal Revenue Service to get financial aid for the spring semester, and the US Department of Agriculture warned that it could only guarantee to provide food stamp benefits through February.
Notably, important benefit programs, such as Social Security and Medicare, will continue. Also, key services — including law enforcement and border patrol — are typically deemed essential and aren’t affected.
Some government functions can continue – at least for a certain period of time – if they are funded through fees or other types of appropriations. For instance, when a shutdown loomed in the fall of 2023, the Internal Revenue Service said it could use some of the funding it received from the Inflation Reduction Act to keep preparing for the upcoming filing season – updating tax forms and technology systems and hiring and training staff.
Will national parks stay open?
A National Park Service Ranger conducts a walking tour in Shark Valley, part of the Everglades National Park, on April 17, 2025 in Florida. Joe Raedle/Getty Images
The impact of shutdowns on the 400-plus national park sites has differed greatly in recent shutdowns.
In 2013, an estimated 8 million recreation visits and $414 million were lost during the 16-day shutdown, according to the National Parks Conservation Association, citing National Park Service data. During the most recent shutdown in 2019, many parks remained open though no visitor services were provided. The Park Service lost $400,000 a day from missed entrance fee revenue, according to the association’s estimates. What’s more, park visitors would have typically spent $20 million on an average January day in nearby communities.
States have also stepped in to keep some national parks open using their own funds. When a shutdown loomed in the fall of 2023, Utah said it would keep the Mighty 5 parks – Arches, Bryce Canyon, Canyonlands, Capitol Reef and Zion – open, while Arizona planned to keep the Grand Canyon operational. Colorado also said it would also keep its four national parks and other federal lands open.
What’s the impact on airline travel?
Air traffic controllers and Transportation Security Administration officers are typically deemed essential and must remain on the job, though they are not paid. But some workers have called out sick during past shutdowns, snarling flights.
The decision by 10 air traffic controllers to stay home in January 2019 helped end that shutdown. Their absence temporarily shut down travel at New York’s LaGuardia airport and caused delays at other major hubs, including in New Jersey, Philadelphia and Atlanta, driving Trump to agree to a temporary government funding measure.
How about the impact on federal workers?
Federal workers bear the brunt of government shutdowns. Some are furloughed, while others are considered essential and have to continue working. But many don’t get paid until the impasse ends.
In March, the last time a federal government shutdown loomed before being averted, more than 1.4 million employees were deemed essential, according to Rachel Snyderman, managing director of economic policy at the Bipartisan Policy Center. About 750,000 of them would have continued to be paid since their salaries were funded through other sources.
Another nearly 900,000 workers would have been furloughed without pay. (Snyderman noted that the estimates did not include the layoffs and departures that occurred in the early weeks of the Trump administration.)
In 2023, the Biden administration warned that the nation’s 1.3 million active-duty military troops would not get paid, before a shutdown was averted at the last minute.
This week, judiciary officials warned that federal courts could be affected by a shutdown within days, much sooner than in previous occurrences, because of tight budgets. While judges and Supreme Court justices would continue to be paid, many other judicial employees would not.
Federal workers are guaranteed to receive their back pay after the impasse is resolved. However, the same is not true for federal contractors who may be furloughed or temporarily laid off by their employers during a shutdown.
What does a shutdown do to the economy?
Shutdowns can have real consequences for the economy since federal spending is delayed, and many federal workers pull back on their purchases while they aren’t receiving paychecks.
The five-week shutdown in 2018-2019 resulted in a $3 billion loss in economic growth that would not be recovered, according to a Congressional Budget Office estimate. It noted that some private sector businesses would never make up their lost income.
Also, because the IRS reduced its compliance activities during the shutdown, CBO estimated that tax revenues would be roughly $2 billion lower — much of which would not be recouped.