by Mia Taylor
Last updated: 6:30 PM ET, Wed January 7, 2026
The recent federal government shutdown, the longest in U.S. history, caused more than $6 billion in economic losses for America’s travel system.
An articled penned by Joshua Friedlander, vice president, research for the U.S. Travel Association, says that loss was driven by “workforce strain, operational slowdowns and suppressed demand.”
To quantify the impacts of the shutdown, which lasted from October 1 through November 12, 2025, the U.S. Travel Association partnered with Tourism Economics to analyze the fallout. That effort revealed $6.1 billion in economic losses across travel and related sectors. The analysis also determined that, on average, the U.S. saw 88,000 fewer trips per day.
Friedlander’s January 7 article goes on to explain that federal government shutdowns, in general, have a variety of ramifications for the travel industry. That includes essential aviation personnel, such as air traffic controllers, TSA officers, and U.S. Customs and Border Protection (CBP) staff, being required to report to work without pay.
That, in turn, “places enormous stress on the workforce responsible for keeping travelers safe and the system functioning,” Friedlander explains, adding that “past shutdowns have resulted in staffing shortages and cascading operational challenges.”
“In November, the Federal Aviation Administration reduced flights at 40 high-traffic airports due to controller shortages, exacerbating delays and forcing cancellations nationwide,” Friedlander adds.
Those are merely a few of the impacts the travel industry experiences when elected officials fail to provide funding for the federal government, as happened recently.
The shutdown was triggered by a disagreement among lawmakers
about extending subsidies for the Affordable Care Act (ACA)
marketplaces. About 24 million people, who otherwise would not have
access to healthcare through employment or Medicaid, rely on the ACA to
access health plans. Democrats were fighting to ensure that the healthcare subsidies that make health insurance somewhat more affordable for Americans, would continue. That effort was unsuccessful and the shutdown ended without the health care subsidy extensions that Democrats were fighting to save.
The shutdown that occurred amid that political battle suppressed travel demand, says Friedlander. That’s because official government travel ceases, and government-related business travel grinds to a halt.
Moreover, public attractions close their doors, including national parks and Smithsonian museums, reducing travel interest and visitation to gateway communities across the country.
“These effects ripple outward, decreasing visitor spending and imposing downstream costs on airlines, hotels, restaurants, small businesses and local economies,” says Friedlander.
The takeaway from the recent federal shutdown is clear, according to Friedlander: “Government shutdowns are costly, disruptive and unnecessary,” he concludes. “They disproportionately harm a sector that supports 15 million jobs and underpins America’s economic growth. Protecting the continuity of travel operations and ensuring essential workers are paid gives due recognition to an industry that has proven to be essential.”
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