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

Updated

December 19, 2024

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 funding measure to avoid a shutdown and its damaging consequences.

Should a shutdown occur, 57,793 small business vendors that rely on federal contracts and 1,865,698 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 438,944 new business applications would not be approved, nor would roughly 6,291 SBA-backed loans be processed.

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.

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

26,589
Active duty and military reservists won't receive their paycheck on time
959
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,564
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.

35,990
Workers’ employment authorized through the E-Verify process would be delayed
23
Small businesses that will not receive an SBA-backed loan this month.

Alaska

25,103
Active duty and military reservists won't receive their paycheck on time.
927
Small businesses that provide goods or services to the federal government won’t be paid this month.

746
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.

1,129
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

30,883
Active duty and military reservists won't receive their paycheck on time.
1,342
Small businesses that provide goods or services to the federal government won’t be paid this month.

10,110
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.

48,742
Workers’ employment authorized through the E-Verify process would be delayed.
11
Small businesses that will not receive an SBA-backed loan this month.

Arkansas

14,168
Active duty and military reservists won't receive their paycheck on time.
542
Small businesses that provide goods or services to the federal government won’t be paid this month.

3,057
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.

62,850
Workers’ employment authorized through the E-Verify process would be delayed.
35
Small businesses that will not receive an SBA-backed loan this month.

California

213,622
Active duty and military reservists won't receive their paycheck on time.
6,403
Small businesses that provide goods or services to the federal government won’t be paid this month.

43,032
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.

144,828
Workers’ employment authorized through the E-Verify process would be delayed.
485
Small businesses that will not receive an SBA-backed loan this month.

Colorado

49,925
Active duty and military reservists won't receive their paycheck on time.
1,699
Small businesses that provide goods or services to the federal government won’t be paid this month.

11,690
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.

29,748
Workers’ employment authorized through the E-Verify process would be delayed.
35
Small businesses that will not receive an SBA-backed loan this month.

Connecticut

12,732
Active duty and military reservists won't receive their paycheck on time.
563
Small businesses that provide goods or services to the federal government won’t be paid this month.

3,952
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.

9,885
Workers’ employment authorized through the E-Verify process would be delayed.
13
Small businesses that will not receive an SBA-backed loan this month.

Delaware

8,082
Active duty and military reservists won't receive their paycheck on time.
175
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,720
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.

3,525
Workers’ employment authorized through the E-Verify process would be delayed.
400
Small businesses that will not receive an SBA-backed loan this month.

District of Columbia

14,554
Active duty and military reservists won't receive their paycheck on time.
548
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,188
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.

7,202
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

102,714
Active duty and military reservists won't receive their paycheck on time.
3,023
Small businesses that provide goods or services to the federal government won’t be paid this month.

53,594
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.

105,675
Workers’ employment authorized through the E-Verify process would be delayed.
731
Small businesses that will not receive an SBA-backed loan this month.

Georgia

89,819
Active duty and military reservists won't receive their paycheck on time.
1,476
Small businesses that provide goods or services to the federal government won’t be paid this month.

20,495
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.

151,732
Workers’ employment authorized through the E-Verify process would be delayed.
100
Small businesses that will not receive an SBA-backed loan this month.

Hawaii

54,274
Active duty and military reservists won't receive their paycheck on time.
518
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,527
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.

1,785
Workers’ employment authorized through the E-Verify process would be delayed.
11
Small businesses that will not receive an SBA-backed loan this month.

Idaho

8,504
Active duty and military reservists won't receive their paycheck on time.
833
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,575
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.

5,127
Workers’ employment authorized through the E-Verify process would be delayed.
46
Small businesses that will not receive an SBA-backed loan this month.

Illinois

42,508
Active duty and military reservists won't receive their paycheck on time.
1,335
Small businesses that provide goods or services to the federal government won’t be paid this month.

14,323
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.

60,272
Workers’ employment authorized through the E-Verify process would be delayed.
112
Small businesses that will not receive an SBA-backed loan this month.

Indiana

17,237
Active duty and military reservists won't receive their paycheck on time.
640
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,735
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.

37,181
Workers’ employment authorized through the E-Verify process would be delayed.
121
Small businesses that will not receive an SBA-backed loan this month.

Iowa

10,903
Active duty and military reservists won't receive their paycheck on time.
319
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,708
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.

11,850
Workers’ employment authorized through the E-Verify process would be delayed.
25
Small businesses that will not receive an SBA-backed loan this month.

Kansas

29,352
Active duty and military reservists won't receive their paycheck on time.
506
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,696
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.

16,258
Workers’ employment authorized through the E-Verify process would be delayed.
23
Small businesses that will not receive an SBA-backed loan this month.

Kentucky

44,313
Active duty and military reservists won't receive their paycheck on time.
477
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,620
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.

17,048
Workers’ employment authorized through the E-Verify process would be delayed.
37
Small businesses that will not receive an SBA-backed loan this month.

Louisiana

30,460
Active duty and military reservists won't receive their paycheck on time.
703
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,877
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.

17,328
Workers’ employment authorized through the E-Verify process would be delayed.
25
Small businesses that will not receive an SBA-backed loan this month.

Maine

4,113
Active duty and military reservists won't receive their paycheck on time.
186
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,176
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.

2,699
Workers’ employment authorized through the E-Verify process would be delayed.
233
Small businesses that will not receive an SBA-backed loan this month.

Maryland

47,552
Active duty and military reservists won't receive their paycheck on time.
2,885
Small businesses that provide goods or services to the federal government won’t be paid this month.

8,085
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.

37,466
Workers’ employment authorized through the E-Verify process would be delayed.
10
Small businesses that will not receive an SBA-backed loan this month.

Massachusetts

17,301
Active duty and military reservists won't receive their paycheck on time.
1,390
Small businesses that provide goods or services to the federal government won’t be paid this month.

6,252
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.

31,908
Workers’ employment authorized through the E-Verify process would be delayed.
122
Small businesses that will not receive an SBA-backed loan this month.

Michigan

15,435
Active duty and military reservists won't receive their paycheck on time.
1,110
Small businesses that provide goods or services to the federal government won’t be paid this month.

11,558
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.

45,748
Workers’ employment authorized through the E-Verify process would be delayed.
42
Small businesses that will not receive an SBA-backed loan this month.

Minnesota

17,699
Active duty and military reservists won't receive their paycheck on time.
834
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,789
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.

32,735
Workers’ employment authorized through the E-Verify process would be delayed.
100
Small businesses that will not receive an SBA-backed loan this month.

Mississippi

25,523
Active duty and military reservists won't receive their paycheck on time.
471
Small businesses that provide goods or services to the federal government won’t be paid this month.

3,960
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.

15,777
Workers’ employment authorized through the E-Verify process would be delayed.
106
Small businesses that will not receive an SBA-backed loan this month.

Missouri

29,817
Active duty and military reservists won't receive their paycheck on time.
968
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,338
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.

40,107
Workers’ employment authorized through the E-Verify process would be delayed.
144
Small businesses that will not receive an SBA-backed loan this month.

Montana

7,276
Active duty and military reservists won't receive their paycheck on time.
968
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,172
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.

1,721
Workers’ employment authorized through the E-Verify process would be delayed.
19
Small businesses that will not receive an SBA-backed loan this month.

Nebraska

12,087
Active duty and military reservists won't receive their paycheck on time.
322
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,744
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.

13,488
Workers’ employment authorized through the E-Verify process would be delayed.
26
Small businesses that will not receive an SBA-backed loan this month.

Nevada

19,332
Active duty and military reservists won't receive their paycheck on time.
507
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,178
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.

10,336
Workers’ employment authorized through the E-Verify process would be delayed.
26
Small businesses that will not receive an SBA-backed loan this month.

New Hampshire

5,002
Active duty and military reservists won't receive their paycheck on time.
330
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,385
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.

3,191
Workers’ employment authorized through the E-Verify process would be delayed.
31
Small businesses that will not receive an SBA-backed loan this month.

New Jersey

24,361
Active duty and military reservists won't receive their paycheck on time.
1,203
Small businesses that provide goods or services to the federal government won’t be paid this month.

12,833
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.

31,464
Workers’ employment authorized through the E-Verify process would be delayed.
327
Small businesses that will not receive an SBA-backed loan this month.

New Mexico

17,881
Active duty and military reservists won't receive their paycheck on time.
771
Small businesses that provide goods or services to the federal government won’t be paid this month.

2,818
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.

3,667
Workers’ employment authorized through the E-Verify process would be delayed.
8
Small businesses that will not receive an SBA-backed loan this month.

New York

46,898
Active duty and military reservists won't receive their paycheck on time.
2,077
Small businesses that provide goods or services to the federal government won’t be paid this month.

24,921
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.

70,079
Workers’ employment authorized through the E-Verify process would be delayed.
258
Small businesses that will not receive an SBA-backed loan this month.

North Carolina

114,954
Active duty and military reservists won't receive their paycheck on time.
1,344
Small businesses that provide goods or services to the federal government won’t be paid this month.

13,842
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.

78,895
Workers’ employment authorized through the E-Verify process would be delayed.
198
Small businesses that will not receive an SBA-backed loan this month.

North Dakota

11,542
Active duty and military reservists won't receive their paycheck on time.
270
Small businesses that provide goods or services to the federal government won’t be paid this month.

710
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.

2,328
Workers’ employment authorized through the E-Verify process would be delayed.
23
Small businesses that will not receive an SBA-backed loan this month.

Ohio

31,753
Active duty and military reservists won't receive their paycheck on time.
1,456
Small businesses that provide goods or services to the federal government won’t be paid this month.

12,224
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.

72,895
Workers’ employment authorized through the E-Verify process would be delayed.
1,306
Small businesses that will not receive an SBA-backed loan this month.

Oklahoma

32,552
Active duty and military reservists won't receive their paycheck on time.
842
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,588
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.

15,286
Workers’ employment authorized through the E-Verify process would be delayed.
29
Small businesses that will not receive an SBA-backed loan this month.

Oregon

9,624
Active duty and military reservists won't receive their paycheck on time.
1,640
Small businesses that provide goods or services to the federal government won’t be paid this month.

4,711
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.

11,166
Workers’ employment authorized through the E-Verify process would be delayed.
4
Small businesses that will not receive an SBA-backed loan this month.

Pennsylvania

27,736
Active duty and military reservists won't receive their paycheck on time.
1,862
Small businesses that provide goods or services to the federal government won’t be paid this month.

12,497
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.

72,055
Workers’ employment authorized through the E-Verify process would be delayed.
93
Small businesses that will not receive an SBA-backed loan this month.

Rhode Island

8,027
Active duty and military reservists won't receive their paycheck on time.
196
Small businesses that provide goods or services to the federal government won’t be paid this month.

935
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.

7,743
Workers’ employment authorized through the E-Verify process would be delayed.
45
Small businesses that will not receive an SBA-backed loan this month.

South Carolina

53,572
Active duty and military reservists won't receive their paycheck on time.
595
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,287
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.

32,173
Workers’ employment authorized through the E-Verify process would be delayed.
128
Small businesses that will not receive an SBA-backed loan this month.

South Dakota

7,620
Active duty and military reservists won't receive their paycheck on time.
421
Small businesses that provide goods or services to the federal government won’t be paid this month.

946
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.

2,082
Workers’ employment authorized through the E-Verify process would be delayed.
222
Small businesses that will not receive an SBA-backed loan this month.

Tennessee

20,119
Active duty and military reservists won't receive their paycheck on time.
675
Small businesses that provide goods or services to the federal government won’t be paid this month.

7,686
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.

74,085
Workers’ employment authorized through the E-Verify process would be delayed.
28
Small businesses that will not receive an SBA-backed loan this month.

Texas

166,261
Active duty and military reservists won't receive their paycheck on time.
3,244
Small businesses that provide goods or services to the federal government won’t be paid this month.

41,304
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.

148,953
Workers’ employment authorized through the E-Verify process would be delayed.
144
Small businesses that will not receive an SBA-backed loan this month.

Utah

15,888
Active duty and military reservists won't receive their paycheck on time.
719
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,943
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.

29,564
Workers’ employment authorized through the E-Verify process would be delayed.
209
Small businesses that will not receive an SBA-backed loan this month.

Vermont

3,032
Active duty and military reservists won't receive their paycheck on time.
161
Small businesses that provide goods or services to the federal government won’t be paid this month.

608
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.

821
Workers’ employment authorized through the E-Verify process would be delayed.
5
Small businesses that will not receive an SBA-backed loan this month.

Virginia

147,073
Active duty and military reservists won't receive their paycheck on time.
4,364
Small businesses that provide goods or services to the federal government won’t be paid this month.

10,576
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.

53,133
Workers’ employment authorized through the E-Verify process would be delayed.
35
Small businesses that will not receive an SBA-backed loan this month.

Washington

73,270
Active duty and military reservists won't receive their paycheck on time.
1,728
Small businesses that provide goods or services to the federal government won’t be paid this month.

8,147
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.

62,983
Workers’ employment authorized through the E-Verify process would be delayed.
46
Small businesses that will not receive an SBA-backed loan this month.

West Virginia

7,359
Active duty and military reservists won't receive their paycheck on time.
252
Small businesses that provide goods or services to the federal government won’t be paid this month.

1,250
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.

2,627
Workers’ employment authorized through the E-Verify process would be delayed.
3
Small businesses that will not receive an SBA-backed loan this month.

Wisconsin

13,344
Active duty and military reservists won't receive their paycheck on time.
727
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,245
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.

26,651
Workers’ employment authorized through the E-Verify process would be delayed.
83
Small businesses that will not receive an SBA-backed loan this month.

Wyoming

5,953
Active duty and military reservists won't receive their paycheck on time.
287
Small businesses that provide goods or services to the federal government won’t be paid this month.

5,027
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.

1,014
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.

Sources:

Bloomberg Government, September 2023
U.S. Department of Defense, Defense Manpower Data Center, June 2024.
U.S. Census Bureau, November 2024.
E-Verify, April 2023.
U.S. Small Business Administration, November 2024.

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