Billions in GDP lost during first week of government shutdown, Johnson says

Audio By Carbonatix

(The Center Square) – As the federal government shutdown hits the one week mark, House Speaker Mike Johnson, R-La., is urging Democrats to vote for Republicans’ funding bill to prevent permanent damage to the U.S. economy. 

“Each week the shutdown continues, it will wipe out an estimated $15 billion in our Gross Domestic Product in our country,” Johnson told reporters Tuesday, referencing calculations released by the White House.

“A month-long shutdown would mean not just 750,000 federal civilian employees furloughed right now, but an additional 43,000 more unemployed Americans across the economy, because that is the effect, the ripple effect that it has in the private sector,” he added.

Congress, however, shows no signs of coming to a funding agreement to open the government anytime soon. Two options lay on the table: Republicans’ clean Continuing Resolution that would extend government funding for seven weeks, or Democrat’s $1.4 trillion spending bill.

Democratic leaders oppose Republicans’ bill because it does nothing to prevent the enhanced Obamacare Premium Tax Credits from expiring in December, a policy issue that they believe must be addressed now to prevent millions of Americans’ health care premiums from spiking. 

Republican leaders have said they are willing to discuss the issue with Democrats, but only after the government reopens. 

“We are pleading with Democrats in the Senate to do the right thing,” Johnson said. “There’s a lot of end-of-year issues that are being conflated with this very simple issue of keeping the government open, and that is the first and most immediate priority.”

At least eight Senate Democrats need to vote for the clean CR for it to clear the chamber’s 60-vote threshold. So far, only three members of the Democratic Caucus have lent their support. 

Senators may vote for the sixth time on both parties' proposals Tuesday evening. As of the afternoon, the U.S. Senate Periodical Press Gallery says votes on the bills “are possible but they are not scheduled at this time.”

The last time federal funding lapsed occurred in late 2018, and the shutdown lasted a record 35 days.