On October 1, 2025, Congress failed to pass an appropriations bill to keep the federal government open. Three weeks have passed, and there is still no clear path forward. With each passing day, Republicans and Democrats alike become further entrenched in their positions, convinced that their cause is just. As a result, hardworking Americans, their families, and their businesses suffer. Government representatives who contend that holding out for an uncompromising win will be beneficial in the long run fail to appreciate the extent of the ongoing harm, and that whatever benefits may materialize in the future are quickly being erased by the damage inflicted now on so many Americans, as well as the millions of small businesses—government contractors and commercial firms alike—that both parties agree form the backbone of the U.S. economy. Business leaders are uniquely situated as they have a direct view of the negative impact of the shutdown on their companies, their employees, and their own personal lives. It is crucial that they make those impacts known to their respective Senate and House representatives and remind them that—regardless of what party leadership or special interests want—the greatest consequence of their grandstanding will be felt at the voting booths.
The impact of the shutdown is wide-ranging and cannot be overstated. Our airports, which service roughly 3 million travelers per day, are staffed with unpaid security personnel and air traffic controllers as they perform vital services with potential life and death implications. National parks, some of the most beautiful in the world, currently suffer from partial closures and limited services. Government spending not only funds important services that make our lives easier and safer, but it ensures a strong U.S. economy. According to Oxford Economics, the U.S. loses roughly between $7 billion to $15 billion in economic output for every week the shutdown continues. With the U.S. federal government being the single largest consumer in the world, the effect is felt acutely in the business community. Thousands of government contractors with employees that provide valuable and needed services to government agencies, and by extension the American public, are forced to lay off workers whose pay cannot be sustained through a government shutdown. Indeed, contractors have started laying employees off due to a lack of expected funds. Further, in a survey recently shared by Axios, 72% of small businesses that responded said it was “important for their business that policymakers can agree on spending to keep the government open.” Veterans have not been left unscathed either, with Department of Veterans Affairs’ employees worried about the detrimental effects this shutdown will have on providing care for veterans. This also extends to veteran-owned businesses, who provide essential services that require work without pay, causing financial strain and uncertainty. The consequences of partisanship on businesses are not merely theoretical; they are unfolding at this moment, and it will extend beyond government contractors.
When the federal government pauses its role as a customer, federal employees and contractors lose their jobs, and in turn may then default on loans or their mortgages, resulting in lower consumer confidence, a downturn in the stock market, and eventually a recession. This snowball effect may seem melodramatic, but federal employees and contractors alike have already voiced the problems that they’re facing, and inertia is a powerful force. Perhaps our government representatives are comfortable in their uncompromising positions; but when they prioritize a victory against the other side, they sacrifice the progress of the American people and the business community.
Regardless of whether you believe federal spending should increase, decrease, or remain the same, one simple fact is undeniable: in a country of 340 million people, the government must reopen, particularly as businesses and individuals alike continue to pay taxes during the shutdown, funding a government that, at this moment, is failing to fulfill its core purpose of serving its constituents.
Just as it is incumbent upon every citizen to exercise their right to vote, it is also necessary to express shared frustration and disappointment when elected representatives shirk their responsibilities in favor of protecting their own interests. So, write letters to your representatives and make calls to their offices; flood their email inboxes and voicemails with one resounding message: make a deal, reopen the government, and let’s get back to the business of running this country.
If you wish to make your voice heard, we have provided a sample letter here. Also, you can find the contact information of your representatives by selecting Senate or House representatives. For more information on how PilieroMazza is assisting government contractors during the shutdown, please contact Tony Franco, Jackie Unger, or another member of PilieroMazza’s Government Contracts Group. Special thanks to Adel Mansour for his assistance with this client alert.
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