The US is on the verge of a government shutdown – and it could cost the country’s travel industry US$1 billion (around AU$1.5 billion) every seven days, says the US Travel Association, citing Tourism Economics data.
In March, the nation narrowly avoided a similar scenario. However, if the US Congress cannot approve a federal spending bill by midnight on 30 September (EST time), the first government shutdown since Donald Trump’s first presidency will take place – and hit hard, says US Travel, which represents all sectors of the travel industry.
In a recent letter to US Congressional leadership, the association warned that a government shutdown would severely harm the travel economy and travellers, with President and CEO Geoff Freeman highlighting the risks.
“A shutdown is a wholly preventable blow to America’s travel economy – costing $1 billion every week – and affecting millions of travellers and businesses while placing unnecessary strain on an already overextended federal travel workforce,” Freeman stated.
The $1 billion weekly losses would be led by air and rail travel disruptions, as well as national park and museum closures, according to the Tourism Economics data.
“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 modernising travel infrastructure,” Freeman said.
“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, travellers and our economy.”
Air traffic controllers and TSA staff normally work unpaid during shutdowns, but past shortages have still caused major flight delays, CNN reported.
A recent Ipsos survey found that most Americans fear a government shutdown would harm the economy and disrupt air travel.
Sixty per cent would cancel or avoid flights, while over 80 per cent say shutdowns damage the economy and inconvenience travellers.
Tourism in trouble?
An impactful government shutdown would be the last thing US tourism needs right now.
According to the latest statistics from the US National Travel and Tourism Office (NTTO), Australian visitor numbers have dropped significantly over the past few months, with preliminary figures for August 2025 showing 78,264 Aussies visited the US compared to 85,038 in August last year.
In July 2025, 83,874 Australians touched down in the US, versus 90,177 during July 2024, while in June 86,053 Aussies visited against 95,776 in the same month last year.
Global visitor numbers (minus Canada and Mexico) to the US in August 2025 reached 3,492,907, which was down on the 3,595,498 who visited during August 2024.
Read our half-yearly report card on US travel here.
