US travel industry loses $1B amid prolonged government shutdown
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The US travel industry lost nearly $1 billion in a week as the government shutdown continued, causing flight delays, unpaid workers, and widespread disruptions.
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The American flag flies atop the Capitol Building, Monday, September 29, 2025, in Washington (AP)
The United States travel economy has lost nearly $1 billion in just one week due to the ongoing government shutdown, according to the US Travel Association, which warned of mounting damage to the sector and broader economy.
“It has been one week since the government shutdown began, and Congress has yet to reach an agreement to restore funding, costing America’s travel economy an estimated $1 billion each week in lost spending,” the association said in a press release on Wednesday.
Association President and CEO Geoff Freeman warned that the shutdown is causing “real and irreversible” harm to the travel sector. He explained that reduced flight availability, delays, and other disruptions are hurting local communities, small businesses, and the country as a whole.
Nationwide fallout, political gridlock
The US government has now been shut down for seven days after Democrats and Republicans failed to agree on a stopgap funding bill before the end of the fiscal year on September 30.
The administration of President Donald Trump and congressional Republicans have accused Democrats of using the deadline for political leverage, particularly over funding for healthcare programs that include undocumented migrants.
The shutdown has left 1.3 million active-duty troops and 50,000 Coast Guard members without pay, halted food assistance programs for low-income families, and affected over 13,000 air traffic controllers, raising the risk of flight disruptions.
According to the Congressional Budget Office (CBO), approximately 750,000 federal employees are being furloughed daily, costing the US economy about $400 million per day in lost productivity and wages.
Senate rejects Democrat funding bill
The US Senate on Wednesday voted down the government funding bill proposed by the Democratic Party, further deepening the fiscal standoff that has left Washington without an approved budget for the new fiscal year.
According to preliminary results, only 47 senators voted in favor of the measure, while 51 opposed it, falling short of the required 60 votes needed for passage. This marks the sixth failed attempt by Democrats to secure Senate approval for the funding legislation.
The rejection highlights the growing divide in Congress, where partisan gridlock continues to prevent agreement on a budget plan for the 2025 fiscal year.
Fiscal year ended without new budget
The 2024 fiscal year officially ended on September 30, but lawmakers have yet to finalize a spending package to keep the government funded. The prolonged impasse reflects the fierce standoff between Democrats and Republicans in the Senate, where neither side holds a decisive majority.
The failure to reach a compromise raises concerns about potential government shutdowns and disruptions to essential federal operations if no agreement is reached soon.
Observers say the rejection underscores the deep partisan divisions over spending priorities, including social programs, defense allocations, and debt management, with both parties blaming each other for the continued deadlock.
