US Travel Association Warns Government Shutdown Could Cost Industry Billions

Image: Capitol Hill in Washington, DC. (Photo Credit: Sagittarius Pro/Adobe)
Image: Capitol Hill in Washington, DC. (Photo Credit: Sagittarius Pro/Adobe)
Mia Taylor
by Mia Taylor
Last updated: 4:30 PM ET, Thu September 25, 2025

With a government shutdown looming, the U.S. Travel Association is calling on lawmakers to avert the crisis, which could have ramifications for the travel economy and the traveling public.

In a letter sent to Congressional leadership, U.S. Travel Association President Geoff Freeman underscored the potentially detrimental impact of a government shutdown.

“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion every week—and affecting millions of travelers and businesses while placing unnecessary strain on an already overextended federal travel workforce,” said Freeman.

Each year, Congress must reach agreement on 12 separate funding bills that provide money for a variety of discretionary federal programs, such as the Department of Defense and the National Institutes of Health, along with national parks and many education programs.

If Congress doesn't act and reach agreement on these 12 bills before Oct. 1, there will be a government shutdown.
Should that happen, the travel economy could lose $1 billion a week due to disruptions in air and rail travel and the closure of national parks and museums, according to Tourism Economics data.

In addition, a survey from Ipsos shows that a large majority of Americans believe a government shutdown will cause economic harm and disrupt air travel.  According to the survey:

  • 60 percent of Americans said they would cancel or avoid trips by air in the event of a shutdown.  
  • 81 percent of Americans agree government shutdowns hurt the economy, and inconvenience air travelers (86 percent).
  • 88 percent of Americans agree members of Congress from both parties should work together to avoid a government shutdown.
  • 69 percent of Americans would be less likely to vote for a member of Congress if they supported a government shutdown. 

“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,” Freeman explained. 
“Nearly nine in 10 Americans agree Congress should work together to prevent a shutdown. Americans deserve better—lawmakers must act before October 1 to keep our government funded and protect jobs, travelers and our economy,” Freeman added. 

It's not just Freeman warning of the impacts of a government shutdown. John Rose, chief risk and security officer for ALTOUR, one of the largest travel management companies in the United States, expressed concerns as well.

"If there is a government shut down, it could impact security, both domestically and internationally for inbound travel," Rose told TravelPulse. "It could create a significant challenge for people looking to do things such as renewing passports or long waits at the airport (to clear TSA security checkpoints)."

For consumers who have upcoming travel booked, Rose advises ensuring you’ve allocated the correct amount of time for entering and leaving an airport. "Long lines have occurred in the past, and consumers are well aware of how to deal with them at airports. However, a simple yet smart rule is to allocate significantly extra time for departing and especially arriving at the airport on international flights."

Rose does not foresee any trouble for airlines themselves should a government shutdown occur, as airlines employ their own staff for baggage handling and traveler check-in gates.

"Still, anything handled by the government, such as TSA, customs, and border protection, which affects Global Entry, etc. - people will want to allocate more time and be prepared," he said.

  


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Mia Taylor

Mia Taylor

Senior Editor

Mia Taylor is an award-winning journalist who has two decades of experience. Most recently she worked as a staff writer for America's largest digital publisher DotdashMeredith, where she contributed stories on a daily basis to four of the company's most iconic brands - Parents,Real Simple, Better Homes & Gardens, and Health. Her work has also appeared in Travel + Leisure, The Boston Globe, The San Diego UnionTribune, Westways Magazine, Fortune, and more.

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