Government Shutdown Could Cost Travel Economy $1 Billion Per Week, Disrupt Travel During Peak Holiday Season

As Congress faces the looming threat of a government shutdown, Americans are bracing for severe economic costs and the threat of widespread travel disruptions just before the holidays. A government shutdown could cost the U.S. travel economy $1 billion per week, affecting millions of American travelers, businesses and federal workers across the country. Previous holiday shutdowns cost the U.S. economy $11 billion. 

"A prolonged government shutdown threatens holiday travel disruptions that Americans won’t tolerate," said Geoff Freeman, President and CEO, U.S. Travel Association. "It’s hard to see how anyone in Congress wins if they force TSA workers, air traffic controllers, and other essential employees to work without pay during one of the busiest travel periods of the year.”

A survey by Ipsos found that:

• 60% of Americans would consider altering their travel plans if a government shutdown occurs, with many choosing to cancel or avoid flights altogether.
• Both political parties would bear responsibility for the resulting economic losses and inconveniences to travelers.
• An overwhelming majority of Americans—81%—agree that government shutdowns hurt the economy, while 86% say they inconvenience air travelers.
• 83% of respondents believe that shutdowns negatively affect businesses reliant on air travel and tourist destinations, such as national parks, museums, and local businesses.
• Bipartisan consensus is clear: nearly nine in 10 Americans (88%) believe members of Congress from both parties should work together to prevent a shutdown. Furthermore, 69% of voters say they would be less likely to support a member of Congress who voted in favor of a shutdown.

In addition, the failure of Congress to pass disaster relief funding could significantly delay the recovery of travel destinations still grappling with the aftermath of recent disasters.

"Research shows that delaying disaster relief funding until 2025 could push recovery efforts into 2026 or beyond," added Freeman. “Americans that are suffering deserve better from their elected officials. It’s unconscionable that Congress would head home for the holidays while leaving communities devastated by disasters out in the cold.”

The travel industry’s timeline for full recovery following major disasters typically spans 10 to 27 months, depending on the severity of the damage. Without emergency relief funding, the recovery timeline for hard-hit areas like North Carolina and Tennessee could extend well into 2026 or longer.

"As the clock ticks, the American people cannot afford further delays in recovery. The urgency of passing a disaster relief bill is clear, not just for the economic health of impacted states, but for the livelihoods of millions of Americans dependent on travel-related businesses," said Freeman.

Congress must act now to avoid the dual crises of a government shutdown and delayed disaster relief funding.