U.S. Shutdown Hits 30 Days as Judge Orders SNAP Benefits to Continue

Overview

• A federal judge directed the government to use emergency funds to keep SNAP payments going, averting an immediate cutoff for more than 42 million recipients.
• The Congressional Budget Office says the shutdown has already cost the economy about $18 billion this quarter, with $7 billion to $14 billion likely unrecoverable.
• CBO projections indicate the shutdown could trim annualized real GDP growth in the fourth quarter by 1.0 to 2.0 percentage points if it continues.
• Key data releases are on hold, including the scheduled GDP report, and many indicators may not be published until December if the impasse extends into mid-November, according to Goldman Sachs.
• Program and security disruptions are widening, with Head Start funding expected to run out starting Saturday for about 65,000 children and the FBI slowing or pausing investigations due to curtailed resources.