Congressional Democrats and Republicans failed to come to
agreement by yesterday’s budget deadline to keep the U.S. government
funded. A shutdown began at 12:01 am Eastern Time on Wednesday as both sides
voted down the other’s proposals to extend funding temporarily. The Republican
proposal would have extended funding through Nov. 21, but fell in a 55-to-45
vote, with two Democrats joining in favor of the plan. The Democrats’ plan, which
would have extended funding through the end of October and included $1 trillion
in healthcare spending that is the major point of contention for the budget row, fell
to a 47-to-53 vote. Budget measures require a 60-vote majority.
Government shutdowns can have a destabilizing impact on the
travel industry since federal employees comprise tens of thousands of critical workers
at airports, including more than 50,000 U.S. Transportation Security
Administration officers and 14,000 air traffic controllers. These employees
will work without getting paid for as long as the government stays closed. They
will be due back wages when the government re-opens, but the longer a shutdown
continues, the more likely it is that such workers will need to find employment
elsewhere.
In addition, the hiring and training of new air traffic
controllers is now halted. According to the U.S. Travel Association, there is
currently a shortage of 2,800 controllers nationwide. Efforts to modernize air
travel systems now also are paused.
According to Tourism Economics, the travel industry could lose as much
as $1 billion per week as it faces a federal shutdown.
The Global Business Travel Association underscored the specific role
of business travel in driving broader economic health and urged the government
to come to consensus.
“Business travel is a catalyst for economic growth, innovation, and
global collaboration,” said GBTA CEO Suzanne Neufang in a statement
released this morning.
According to the trade organization, U.S.
business travel is anticipated to reach $395.4 billion this year, making
it the top market in the $1.57 trillion global sector. Further, the association's 2024 U.S. Economic Impact Study showed
that business travel contributed nearly $421 billion annually in direct
spending, supported 6 million jobs, and accounted for almost 2 percent
of U.S. GDP and 3.5 percent of total U.S. employment. For every dollar
spent on business travel, $1.15 is returned to the U.S. economy in
net-new GDP.
“The government shutdown threatens to stall that
momentum," Neufang continued. "We urge Congress to act swiftly and responsibly to pass a
budget to re-open the U.S. government and keep our economy moving.
Productive and essential business travel is threatened in times of
economic uncertainty or in an environment of additional barriers and
restrictions.”
What to Expect
Passport services remain open during government shutdowns.
Business travelers should expect longer lines at airport
security due to TSA and air traffic controller staffing shortages, especially
if the shutdown continues for an extended time. Travelers might also experience
flight delays and cancellations, which have already been an increasing issue at
some major hubs.
According to USA Today, roughly 10 percent of TSA workers
called in sick during the 34-day government shutdown that started in December
2018 and extended into 2019, driving up screening times at major airports
across the country.
Data from the market research and consulting firm Ipsos showed 60 percent
of U.S. residents would cancel or avoid trips by air in the event of a
shutdown, and more than 80 percent say government shutdowns hurt the economy
and inconvenience travelers.
"A shutdown is a wholly preventable blow to America's
travel economy," said U.S. Travel Association president and CEO Geoff
Freeman in a letter sent to Congress last week.
"The longer a shutdown drags on, the more likely we are
to see longer TSA lines, flight delays and cancellations, national parks in
disrepair and unnecessary delays in modernizing travel infrastructure,"
said Freeman. "Americans deserve better."