DHS shutdown has caused at least $2.5 billion in losses so far — but damage expected to be far worse, economists say
By Ryan King
Published on March 18, 2026.
The Department of Homeland Security (DHS) shutdown has caused at least $2.5 billion in losses so far, according to White House economists. This is on top of an estimated $90 billion loss from last year's record-breaking stoppage. The current $2.,5 billion damage estimate is a "conservative figure" that only includes the ‘direct’ effects of reduced government expenditures and does not account for the adverse ripple effects of the partial DHS shutdown. The cost of the loss of government employees and contractors only reflects the cost of lost paychecks rather than the broader economic impact of travel delays and consumer spending. The Congressional Budget Office estimates that between $7 billion and $14 billion of the damage from a six-week shutdown is likely to be permanent. The disruption of the travel economy is particularly concentrated in the travel industry.
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