How would a shutdown affect the states?

Stephanie Ferguson Melhorn
Senior Director, Workforce & International Labor Policy, U.S. Chamber of Commerce

Makinizi Hoover
Senior Manager, Strategic Advocacy, U.S. Chamber of Commerce

Published

November 14, 2023

A government shutdown occurs when Congress fails to pass a spending bill to fund the federal government. A shutdown imposes detrimental impacts on Americans and businesses across the country. The U.S. Chamber of Commerce is calling on Congress to work together to pass a bipartisan budget to avoid a shutdown and its damaging consequences.

Should a shutdown occur, 57,000 small business vendors that rely on federal contracts and 1,972,296 active duty and military reservists would not be paid on time. E-Verify cases would not be processed, delaying as many as 1.8 million workers from receiving necessary authorization to begin working. An estimated 400,000 new business applications would not be approved, nor would roughly 5,000 SBA-backed loans be processed.

To see the impact a government shutdown would have in your state, click on or select your state below.

Government shutdown: state-by-state impact

Use the dropdown menu to select a state to discover the effects of a government shutdown.

State

Click on a state for details

Alabama

27,800
Active duty and military reservists won't receive their paycheck on time
1,000
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,900
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

36,000
Workers’ employment authorized through the E-Verify process would be delayed
19
Small businesses that will not receive an SBA-backed loan this month.

Alaska

25,500
Active duty and military reservists won't receive their paycheck on time.
900
Small businesses that provide goods or services to the federal government won’t be paid this month.

700
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

1,100
Workers’ employment authorized through the E-Verify process would be delayed.
3
Small businesses that will not receive an SBA-backed loan this month.

Arizona

34,600
Active duty and military reservists won't receive their paycheck on time.
1,300
Small businesses that provide goods or services to the federal government won’t be paid this month.

10,200
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

48,700
Workers’ employment authorized through the E-Verify process would be delayed.
140
Small businesses that will not receive an SBA-backed loan this month.

Arkansas

14,800
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

3,200
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

62,900
Workers’ employment authorized through the E-Verify process would be delayed.
42
Small businesses that will not receive an SBA-backed loan this month.

California

217,900
Active duty and military reservists won't receive their paycheck on time.
6,400
Small businesses that provide goods or services to the federal government won’t be paid this month.

45,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

144,800
Workers’ employment authorized through the E-Verify process would be delayed.
355
Small businesses that will not receive an SBA-backed loan this month.

Colorado

52,400
Active duty and military reservists won't receive their paycheck on time.
1,700
Small businesses that provide goods or services to the federal government won’t be paid this month.

10,600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

29,700
Workers’ employment authorized through the E-Verify process would be delayed.
29
Small businesses that will not receive an SBA-backed loan this month.

Connecticut

13,900
Active duty and military reservists won't receive their paycheck on time.
600
Small businesses that provide goods or services to the federal government won’t be paid this month.

3,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

9,900
Workers’ employment authorized through the E-Verify process would be delayed.
31
Small businesses that will not receive an SBA-backed loan this month.

Delaware

8,800
Active duty and military reservists won't receive their paycheck on time.
200
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

3,500
Workers’ employment authorized through the E-Verify process would be delayed.
391
Small businesses that will not receive an SBA-backed loan this month.

District of Columbia

14,900
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,200
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

7,200
Workers’ employment authorized through the E-Verify process would be delayed.
1
Small businesses that will not receive an SBA-backed loan this month.

Florida

107,400
Active duty and military reservists won't receive their paycheck on time.
3,000
Small businesses that provide goods or services to the federal government won’t be paid this month.

53,900
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

105,700
Workers’ employment authorized through the E-Verify process would be delayed.
449
Small businesses that will not receive an SBA-backed loan this month.

Georgia

97,300
Active duty and military reservists won't receive their paycheck on time.
1,500
Small businesses that provide goods or services to the federal government won’t be paid this month.

23,500
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

151,700
Workers’ employment authorized through the E-Verify process would be delayed.
95
Small businesses that will not receive an SBA-backed loan this month.

Hawaii

51,600
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

1,800
Workers’ employment authorized through the E-Verify process would be delayed.
9
Small businesses that will not receive an SBA-backed loan this month.

Idaho

9,100
Active duty and military reservists won't receive their paycheck on time.
800
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,500
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

5,100
Workers’ employment authorized through the E-Verify process would be delayed.
36
Small businesses that will not receive an SBA-backed loan this month.

Illinois

46,200
Active duty and military reservists won't receive their paycheck on time.
1,300
Small businesses that provide goods or services to the federal government won’t be paid this month.

14,000
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

60,300
Workers’ employment authorized through the E-Verify process would be delayed.
120
Small businesses that will not receive an SBA-backed loan this month.

Indiana

18,900
Active duty and military reservists won't receive their paycheck on time.
600
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,400
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

37,200
Workers’ employment authorized through the E-Verify process would be delayed.
106
Small businesses that will not receive an SBA-backed loan this month.

Iowa

11,400
Active duty and military reservists won't receive their paycheck on time.
300
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

11,900
Workers’ employment authorized through the E-Verify process would be delayed.
24
Small businesses that will not receive an SBA-backed loan this month.

Kansas

32,000
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,700
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

16,300
Workers’ employment authorized through the E-Verify process would be delayed.
30
Small businesses that will not receive an SBA-backed loan this month.

Kentucky

47,500
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

17,000
Workers’ employment authorized through the E-Verify process would be delayed.
19
Small businesses that will not receive an SBA-backed loan this month.

Louisiana

32,400
Active duty and military reservists won't receive their paycheck on time.
700
Small businesses that provide goods or services to the federal government won’t be paid this month.

6,600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

17,300
Workers’ employment authorized through the E-Verify process would be delayed.
24
Small businesses that will not receive an SBA-backed loan this month.

Maine

4,400
Active duty and military reservists won't receive their paycheck on time.
200
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,100
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

2,700
Workers’ employment authorized through the E-Verify process would be delayed.
56
Small businesses that will not receive an SBA-backed loan this month.

Maryland

49,100
Active duty and military reservists won't receive their paycheck on time.
2,900
Small businesses that provide goods or services to the federal government won’t be paid this month.

8,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

37,500
Workers’ employment authorized through the E-Verify process would be delayed.
5
Small businesses that will not receive an SBA-backed loan this month.

Massachusetts

18,000
Active duty and military reservists won't receive their paycheck on time.
1,400
Small businesses that provide goods or services to the federal government won’t be paid this month.

6,200
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

31,900
Workers’ employment authorized through the E-Verify process would be delayed.
104
Small businesses that will not receive an SBA-backed loan this month.

Michigan

17,400
Active duty and military reservists won't receive their paycheck on time.
1,100
Small businesses that provide goods or services to the federal government won’t be paid this month.

12,000
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

45,700
Workers’ employment authorized through the E-Verify process would be delayed.
46
Small businesses that will not receive an SBA-backed loan this month.

Minnesota

19,000
Active duty and military reservists won't receive their paycheck on time.
800
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

32,700
Workers’ employment authorized through the E-Verify process would be delayed.
99
Small businesses that will not receive an SBA-backed loan this month.

Mississippi

27,000
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,400
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

15,800
Workers’ employment authorized through the E-Verify process would be delayed.
112
Small businesses that will not receive an SBA-backed loan this month.

Missouri

34,900
Active duty and military reservists won't receive their paycheck on time.
1,000
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,000
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

40,100
Workers’ employment authorized through the E-Verify process would be delayed.
112
Small businesses that will not receive an SBA-backed loan this month.

Montana

7,500
Active duty and military reservists won't receive their paycheck on time.
1,000
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

1,700
Workers’ employment authorized through the E-Verify process would be delayed.
20
Small businesses that will not receive an SBA-backed loan this month.

Nebraska

12,400
Active duty and military reservists won't receive their paycheck on time.
300
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

13,500
Workers’ employment authorized through the E-Verify process would be delayed.
24
Small businesses that will not receive an SBA-backed loan this month.

Nevada

20,500
Active duty and military reservists won't receive their paycheck on time.
500
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

10,300
Workers’ employment authorized through the E-Verify process would be delayed.
17
Small businesses that will not receive an SBA-backed loan this month.

New Hampshire

5,400
Active duty and military reservists won't receive their paycheck on time.
300
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,200
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

3,200
Workers’ employment authorized through the E-Verify process would be delayed.
28
Small businesses that will not receive an SBA-backed loan this month.

New Jersey

25,700
Active duty and military reservists won't receive their paycheck on time.
1,200
Small businesses that provide goods or services to the federal government won’t be paid this month.

13,100
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

31,500
Workers’ employment authorized through the E-Verify process would be delayed.
119
Small businesses that will not receive an SBA-backed loan this month.

New Mexico

17,700
Active duty and military reservists won't receive their paycheck on time.
800
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

3,700
Workers’ employment authorized through the E-Verify process would be delayed.
7
Small businesses that will not receive an SBA-backed loan this month.

New York

49,400
Active duty and military reservists won't receive their paycheck on time.
2,100
Small businesses that provide goods or services to the federal government won’t be paid this month.

25,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

70,100
Workers’ employment authorized through the E-Verify process would be delayed.
344
Small businesses that will not receive an SBA-backed loan this month.

North Carolina

122,200
Active duty and military reservists won't receive their paycheck on time.
1,300
Small businesses that provide goods or services to the federal government won’t be paid this month.

13,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

78,900
Workers’ employment authorized through the E-Verify process would be delayed.
179
Small businesses that will not receive an SBA-backed loan this month.

North Dakota

12,100
Active duty and military reservists won't receive their paycheck on time.
300
Small businesses that provide goods or services to the federal government won’t be paid this month.

700
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

2,300
Workers’ employment authorized through the E-Verify process would be delayed.
22
Small businesses that will not receive an SBA-backed loan this month.

Ohio

34,400
Active duty and military reservists won't receive their paycheck on time.
1,500
Small businesses that provide goods or services to the federal government won’t be paid this month.

12,100
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

72,900
Workers’ employment authorized through the E-Verify process would be delayed.
989
Small businesses that will not receive an SBA-backed loan this month.

Oklahoma

34,600
Active duty and military reservists won't receive their paycheck on time.
800
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

15,300
Workers’ employment authorized through the E-Verify process would be delayed.
36
Small businesses that will not receive an SBA-backed loan this month.

Oregon

11,200
Active duty and military reservists won't receive their paycheck on time.
1,600
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,300
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

11,200
Workers’ employment authorized through the E-Verify process would be delayed.
30
Small businesses that will not receive an SBA-backed loan this month.

Pennsylvania

30,700
Active duty and military reservists won't receive their paycheck on time.
1,900
Small businesses that provide goods or services to the federal government won’t be paid this month.

12,100
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

72,100
Workers’ employment authorized through the E-Verify process would be delayed.
91
Small businesses that will not receive an SBA-backed loan this month.

Rhode Island

7,900
Active duty and military reservists won't receive their paycheck on time.
200
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,000
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

7,700
Workers’ employment authorized through the E-Verify process would be delayed.
14
Small businesses that will not receive an SBA-backed loan this month.

South Carolina

56,300
Active duty and military reservists won't receive their paycheck on time.
600
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,500
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

32,200
Workers’ employment authorized through the E-Verify process would be delayed.
119
Small businesses that will not receive an SBA-backed loan this month.

South Dakota

8,200
Active duty and military reservists won't receive their paycheck on time.
400
Small businesses that provide goods or services to the federal government won’t be paid this month.

900
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

2,100
Workers’ employment authorized through the E-Verify process would be delayed.
218
Small businesses that will not receive an SBA-backed loan this month.

Tennessee

20,300
Active duty and military reservists won't receive their paycheck on time.
700
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,700
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

74,100
Workers’ employment authorized through the E-Verify process would be delayed.
32
Small businesses that will not receive an SBA-backed loan this month.

Texas

174,600
Active duty and military reservists won't receive their paycheck on time.
3,200
Small businesses that provide goods or services to the federal government won’t be paid this month.

39,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

149,000
Workers’ employment authorized through the E-Verify process would be delayed.
132
Small businesses that will not receive an SBA-backed loan this month.

Utah

16,600
Active duty and military reservists won't receive their paycheck on time.
700
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,700
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

29,600
Workers’ employment authorized through the E-Verify process would be delayed.
157
Small businesses that will not receive an SBA-backed loan this month.

Vermont

3,600
Active duty and military reservists won't receive their paycheck on time.
200
Small businesses that provide goods or services to the federal government won’t be paid this month.

600
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

800
Workers’ employment authorized through the E-Verify process would be delayed.
8
Small businesses that will not receive an SBA-backed loan this month.

Virginia

156,500
Active duty and military reservists won't receive their paycheck on time.
4,400
Small businesses that provide goods or services to the federal government won’t be paid this month.

10,500
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

53,100
Workers’ employment authorized through the E-Verify process would be delayed.
34
Small businesses that will not receive an SBA-backed loan this month.

Washington

81,000
Active duty and military reservists won't receive their paycheck on time.
1,700
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,800
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

63,000
Workers’ employment authorized through the E-Verify process would be delayed.
41
Small businesses that will not receive an SBA-backed loan this month.

West Virginia

7,800
Active duty and military reservists won't receive their paycheck on time.
300
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,200
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

2,600
Workers’ employment authorized through the E-Verify process would be delayed.
6
Small businesses that will not receive an SBA-backed loan this month.

Wisconsin

15,000
Active duty and military reservists won't receive their paycheck on time.
700
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,400
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

26,700
Workers’ employment authorized through the E-Verify process would be delayed.
108
Small businesses that will not receive an SBA-backed loan this month.

Wyoming

6,200
Active duty and military reservists won't receive their paycheck on time.
300
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,400
New business applications that were filed this month won’t have IRS staff available to help them navigate any problems in getting an employer identification number.

1,000
Workers’ employment authorized through the E-Verify process would be delayed.
1
Small businesses that will not receive an SBA-backed loan this month.

Figures are approximate and calculated based on rolling annual averages per state.

A government shutdown would also impact more than American businesses. New patients would no longer be accepted into potentially life-saving clinical research trials. The hiring of federal law enforcement officials would come to a halt. National parks, vital for generating revenue in local communities, would close. Read the real life stories of what Americans endured during the 2018-19 government shutdown here.

The U.S. Chamber is committed to supporting businesses and our nation’s system of free enterprise. We call on Congress to work together now to pass the budget and spare our nation from the pains of a government shutdown.

Sources:

Bloomberg Government, September 2023
Governing.com, U.S. Department of Defense, Defense Manpower Data Center, September 2021.
U.S. Census Bureau, August 2023.
E-Verify, April 2023.
U.S. Small Business Administration, October 2023.

About the authors

Stephanie Ferguson Melhorn

Stephanie Ferguson Melhorn is the Senior Director of Workforce & International Labor Policy. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.

Makinizi Hoover

Makinizi Hoover is the Senior Manager of Strategic Advocacy at the U.S. Chamber of Commerce. Her work includes the development and project management of comprehensive data centers that serve as a valuable resource for policymakers, businesses, and the public.

Economy