Government Shutdown Wrecks $1B in US Travel Revenue

Since the start of the US federal government shutdown on October 1, 2025, the American travel economy has already suffered $1 billion in lost spending.

The US Travel Association is monitoring this ongoing economic impact through a real-time cost tracker, which surpassed the $1 billion threshold as of October 8.

The loss reflects decreased consumer spending on travel-related activities such as hotel stays, dining, transportation, and retail purchases tied to tourism.

The ripple effects are felt broadly, harming airlines, hospitality businesses, and local economies that depend heavily on visitor spending.

Commercial airlines continue to operate, but essential federal employees, such as TSA agents and air traffic controllers, are working without pay, resulting in staffing shortages. The shutdown has also led to the furlough of 11,322 FAA workers, further complicating aviation operations.

As a result, travelers experience increased waiting times and occasional flight cancellations or delays. Passport and visa processing have also slowed down, adding another layer of difficulty for travelers.

Photo by Eric Prouzet on Unsplash