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USTA: Travel loses $1.8B to shutdown

The loss continues to grow every second

U.S. government shutdown 2025 travel impact

The U.S. lost more than $1.8 billion in domestic travel due to the government shutdown that began Oct. 1, according to the U.S. Travel Association.

Summary:

  • U.S. lost more than $1.8 billion in domestic travel since the Oct. 1 shutdown, USTA reported.
  • The administration views the shutdown as a way to cut costs and reduce waste.
  • Travel spending losses grow each second the government remains closed.

THE U.S. LOST more than $1.8 billion in domestic travel due to the government shutdown that began Oct. 1, according to a real-time cost ticker on the U.S. Travel Association website. Meanwhile, the Trump administration reportedly began laying off more than 4,000 federal employees as the budget standoff continues.


The association’s ticker surpassed $1 billion on Oct. 8 and the loss continues to grow every second, USTA said in a statement.

“This shutdown is doing real, irreversible damage,” said Geoff Freeman, USTA’s president and CEO. “Travelers are facing longer TSA lines and flight delays. Airports are reducing flights and we’ve seen entire control towers go dark. The longer this drags on, the worse the cascade of damage will be—for local communities, small businesses and the country. Congress needs to act now and reopen the government.”

In a Sept. 25 letter to congressional leaders, USTA warned a shutdown could prompt about 60 percent of Americans to cancel or avoid air travel.

Freeman said travel keeps America moving.

“When travel is delayed and services are disrupted, the ripple effects reach every corner of our country,” he said.

Meanwhile, the Trump administration began laying off more than 4,000 federal employees as the budget standoff continues, The Washington Post reported. Trump blamed Democrats for the deadlock and said he plans to “fire a lot” of federal workers he described as “Democrat-oriented.”

"They started this thing," Trump told reporters during an Oval Office event, calling the job cuts "Democrat-oriented, according to India Weekly." Trump’s Republicans hold majorities in both chambers of Congress but need Democratic votes in the U.S. Senate to pass any measure funding the government.

Fox News reported the shutdown costs taxpayers about $400 million a day. Republican senator Joni Ernst of Iowa said that taxpayers were paying “750,000 non-essential bureaucrats not to work.”

However, the administration reportedly sees the shutdown as an opportunity to cut costs and reduce waste, but economists warn it could slow growth and disrupt sectors, including immigration processing.

Separately, the Trump administration introduced new H-1B visa restrictions after adding a $100,000 annual filing fee in September. For employers relying on skilled foreign labor, the H-1B overhaul adds uncertainty to an already unsettled policy environment.

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