Business groups are expressing concern that the ongoing government shutdown is having negative impacts on economic activity and the ability of firms to operate and grow.
The U.S. Chamber of Commerce on Thursday warned the impact of the government shutdown, which began on Oct. 1, is beginning to have an impact on businesses, workers and the overall economy as it drags on.
“The government shutdown is harming small businesses and costing American economic growth that can’t be recovered,” said Neil Bradley, EVP and chief policy officer at the U.S. Chamber of Commerce.
“This shutdown is already one of the longest, and there doesn’t appear to be a quick resolution in sight. The impacts to businesses are beginning to pile up, and impacting both their current and future growth. Businesses need government to function,” Bradley added.
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Bradley said the Chamber hosted a fly-in in D.C. last week that allowed small businesses to meet with lawmakers and their staffers to discuss their priorities.
One such business owner was Murphy’s Naturals CEO Philip Freeman, whose firm is based in Raleigh, N.C., and makes mosquito and tick repellents using natural ingredients. Freeman said the shutdown is delaying regulatory approvals.
“We may not feel it right away, but the backlog that is generated by the shutdown will last long beyond when everything is cleared up and there’s no longer a shutdown. That means that the extensive backlog of labels submitted to the U.S. EPA will be more extensive and take even longer to clear,” Freeman explained.
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Other business groups have joined in the calls for the government shutdown to end, while highlighting impacts on their respective industries due to the disruption of the routine operations of federal agencies.
“An open, functioning federal government allows manufacturers to get innovative products approved, next-generation facilities inspected and permitting decisions made,” National Association of Manufacturers president and CEO Jay Timmons told FOX Business.
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The American Petroleum Institute (API) issued a warning after the shutdown began that it could create a more challenging regulatory environment for businesses to navigate while also delaying regulatory approvals for energy projects.
“The American oil and natural gas industry’s mission of delivering reliable energy depends on a functioning federal gov’t,” the group wrote in a post on X. “Prolonging this shutdown risks delaying critical projects & adding regulatory uncertainty.”
Treasury Secretary Scott Bessent acknowledged the economic toll of the shutdown this week, saying that the ongoing shutdown is “starting to cut into muscle” in terms of the economy, which the Treasury indicated could amount to about $15 billion a week.
Bessent urged Senate Democrats to stop blocking a continuing resolution that would restore funding and reopen the government for a short period of time to allow the two sides to reach an agreement on spending levels.
Democrats are calling for the extension of health insurance subsidies under Obamacare that are due to expire at the end of this year.
