Federal government shutdowns create immediate disruptions across the US travel system, with direct consequences for the overall economy, according to analysis from the U.S. Travel Association (USTA).
The association found that shutdowns over the past few administrations strained aviation operations and suppressed travel demand, leading to reduced bookings for airport transfers, corporate travel, and government-related transportation. During the most recent shutdown, the travel economy lost more than $6 billion, driven by workforce stress, flight disruptions, and declining traveler confidence.
Essential aviation workers—including air traffic controllers, TSA officers, and Customs and Border Protection staff—were required to work without pay, contributing to staffing shortages and operational challenges. In November, air traffic controller shortages forced the FAA to reduce flights at 40 major airports, resulting in widespread delays and cancellations that directly impacted chauffeured operators reliant on (somewhat) predictable flight schedules.
Travel demand also fell as government travel halted and public attractions such as national parks and Smithsonian Institutions closed. U.S. Travel and Tourism Economics found that the 43-day shutdown from October to November 2025 resulted in $6.1 billion in losses and an average of 88,000 fewer trips per day nationwide.
Public support for reform is strong. A survey conducted by Ipsos and USTA found that four in five Americans support paying essential aviation workers during shutdowns. Bipartisan momentum is building in Congress, including passage of H.R. 6086, aimed at protecting air traffic controller pay.
The analysis confirms what we all suspected: government shutdowns are costly, disruptive, and unnecessary—placing avoidable strain on an overall travel sector that supports 15 million US jobs.
Visit ustravel.org for more information.
[01.13.26]
