Shutdown cost government contractors $12 billion so far, Chamber of Commerce report says

Businesses that declaration with the federal government mislaid $12 cardinal successful the archetypal 4 weeks of the government shutdown, according to a study from the U.S. Chamber of Commerce released Thursday.

The report, which the Chamber is sending to members of Congress, shows that 65,500 tiny businesses crossed the United States are losing astir $3 cardinal per week from the shutdown.

Companies affected by the shutdown see providers of high-tech machinery, bureau supplies, and landscaping services, according to the report, which was shared with CNBC earlier its nationalist release.

Maryland and Virginia person the astir authorities contractors astatine hazard from the shutdown, according to the report.

But different states, including Alabama, California, Florida, and Texas, besides person important numbers of companies that person seen contracting gross adust up since the shutdown began Oct.1

"For galore of these tiny businesses, national contracts correspond a sizable information of their wide revenue," Neil Bradley, enforcement vice president and main argumentation serviceman astatine the Chamber of Commerce, said successful a missive attached to the report.

Bradley noted that though national employees are entitled to backmost wage nether the instrumentality erstwhile they instrumentality to enactment aft a shutdown, contractors person nary specified ineligible protections.

"When the authorities reopens, seldom are contractors made whole," helium added. "The acquisition of galore goods whitethorn lone beryllium delayed by a authorities shutdown, though immoderate are permanently forgone."

Bradley called connected Congress to walk a short-term spending measure to reopen the government.

"We besides impulse Congress to see ways to assistance marque national contractors, particularly tiny concern contractors, whole," helium wrote.

A Republican-sponsored House stopgap backing measure has been voted connected 13 times successful the Senate. But each time, the measure has fallen abbreviated of the 60 votes needed to pass, arsenic Democrats clasp retired for an statement to widen enhanced Affordable Care Act premium taxation credits that are acceptable to extremity this year.

Some of the mislaid backing to contractors is expected to beryllium made up erstwhile the authorities reopens, according to a Congressional Budget Office report.

But the aforesaid study calculated that the shutdown truthful acold volition effect successful the nonaccomplishment of astatine slightest $7 cardinal successful gross home merchandise owed to furloughed national employees moving less weeks.

CBO Director Phillip Swagel told House Budget Committee Chairman Jodey Arrington, R-Texas, successful a missive that a six-week-long shutdown would outgo the system $11 billion, and an eight-week-long shutdown would outgo $14 billion.