Impact of US Government Shutdown on Economy and Indigenous Communities

Tue Nov 11 2025 10:15:04 GMT+0200 (Eastern European Standard Time)

The prolonged government shutdown in the US has sparked concerns over economic resilience and its implications for indigenous communities, particularly regarding welfare programs and travel disruptions.

As the U.S. government shutdown nears its conclusion, a significant burden remains on an already fragile economy. With millions of federal employees experiencing unpaid leave, many indigenous communities relying on federal contracts and SNAP food benefits are particularly vulnerable. Reports indicate prolonged effects on consumer spending and essential programs, highlighting the intersection of national policy and the welfare of marginalized populations.

WASHINGTON (AP) — The longest federal government shutdown in U.S. history appears to be nearing an end, but not without leaving a mark on an economy already challenged by other factors.

About 1.25 million federal workers have gone without pay since October 1, and this lack of income has a wide-reaching effect, particularly on indigenous communities who rely heavily on SNAP benefits and federal contracts. Thousands of travel plans have been disrupted, which adds to the frustrations felt by those working within and alongside indigenous groups.

Although many of the lost economic activities will rebound with the reopening of government offices, some impacts, such as canceled flights and postponed purchases, may remain permanent. Gregory Daco, a noted economist, commented on the extraordinary length of this shutdown as a significant disruptor to both welfare programs and travel.

The Congressional Budget Office estimates that the shutdown will reduce the U.S. economic growth by about 1.5 percentage points in the year’s final quarter, leaving enduring scars, particularly for marginalized groups already contending with economic insecurity.

Many indigenous communities utilize SNAP benefits to support their local economies. With a cutoff of approximately $8 billion in SNAP payments affecting millions, the health and wellness of vulnerable populations are at stake.

Flight Disruption and Economic Ripple Effect

As planes remain grounded, business and travel expenditures are projected to decline significantly, which will hurt local economies including those in indigenous territories. Restaurant and retail businesses, many of which are operated by or employ indigenous people, face a potential drop in customer traffic.

Consumer Confidence and the Path Forward

The shutdown has dire implications for consumer sentiment, which has plummeted to a three-year low. This pessimism can slow recovery efforts for all communities, particularly among those already facing systemic obstacles.

Ultimately, as negotiations continue in Congress to fully fund essential services, the need for an inclusive approach that addresses the vulnerabilities of marginalized populations, including indigenous communities, must be prioritized. Addressing the needs of those left behind is crucial for sustainable recovery.