The feds will struggle to dig out of a backlog of hiring and training that’s essential to pushing out tax refunds, protecting U.S. borders and guiding air traffic. Government contractors are expected to jack up prices on everything from helicopters to IT support, growing wise to an administration that doesn’t pay its bills for weeks on end.
And the agriculture industry, real estate sector, oil drillers and global investors are all bracing for years of cascading setbacks spurred by the pause in government loans, permitting and deal-making approval. The enduring pain will extend across the quarter of the U.S. government now largely shuttered.
“Even if the shutdown were resolved tomorrow, the fallout is going to last months, if not years,” said former Homeland Security Secretary Jeh Johnson.