On Tuesday night, Americans watched closely to see whether Congress would avoid a government shutdown. When lawmakers failed to reach a compromise before the midnight deadline, the federal government officially ran out of funding. So, what does a government shutdown actually mean? The Congressional Research Service explains that when annual or temporary appropriations expire without renewal, federal agencies experience what’s known as a “funding gap.” Since the federal fiscal year begins on October 1, Congress and the president must pass new appropriations by that date. If they don’t, and the gap stretches longer than a day, a shutdown begins.
During a government closure, many federal workers are placed on “shutdown furlough,” meaning they’re temporarily off duty and without pay until funding is restored. Programs funded by other laws, such as Social Security, may keep running, although they can still face disruptions if certain staff members rely on annual appropriations.
Unfortunately, the consequences go far beyond Washington. Public health research and disease monitoring are paused, law enforcement hiring and court cases are slowed down, and veterans may lose access to services. Travelers are also likely to face added uncertainty at a time when the tourism industry is already struggling as a result of U.S. travel boycotts by global visitors, particularly Canadians, who have also reacted fairly bluntly to how the American government lapse will affect them. With international tourists increasingly wary of U.S. politics, this shutdown is set to deliver another costly setback to America’s travel and tourism economy.
How A Government Shutdown Impacts Travel And Tourism
A government shutdown affects many parts of travel. Agencies that keep airports running, process visas and passports, and manage national parks, monuments, and museums all feel the impact. While some essential services continue, others slow down or stop completely, creating problems not just for government employees but also for travelers and businesses that depend on tourism.
Impacts On Air Travel
Congressman Ami Bera’s shutdown FAQ notes that most TSA officers and FAA staff are considered essential workers, which means they still report to work during a shutdown. Flights will continue, but staffing shortages can make travel more difficult. Passengers may see longer security lines, delayed flights, and the possibility of cancellations.
While TSA officers aren’t paid during the shutdown, according to the U.S. Office of Personnel Management’s Guidance for Shutdown Furloughs, the government is required to provide retroactive pay after the shutdown ends.
Additionally, visa and passport services are expected to continue operating, as they are largely funded through processing fees rather than government appropriations. However, a long shutdown could still cause slowdowns in the absence of resources.
Industry groups are already warning Americans about the effects of a shutdown on air travel. Airlines for America, which represents major carriers like American and Delta, noted that when air traffic controllers, inspectors, and TSA staff are forced to work unpaid or in smaller numbers, it puts stress on the entire system.
“When federal employees who manage air traffic, inspect aircraft, and secure our nation’s aviation system are furloughed or working without pay, the entire industry and millions of Americans feel the strain,” Airlines for America wrote.
This stress doesn’t just affect workers — it trickles down to millions of travelers who may face a slower and less reliable air travel experience.
Impacts On National Parks
The National Park Service has a contingency plan for the 2025 shutdown. Visitors can still access outdoor areas like roads, trails, lookouts, and open-air memorials, although they should pay attention to live National Park Service closure updates. Some fee-collecting parks may also use reserve funds to keep basic services running, including restrooms, trash pickup, road and campground upkeep, emergency response, and entrance gates staffed for safety information.
Most services, however, are cut, including:
* Visitor centers, museums, and gated parking lots
* Parks without fee reserves — meaning no permits, ranger programs, or maintenance
* Websites and social media updates, except for emergencies
* Sensitive areas like historic or archaeological sites, in the event that they cannot be protected with limited staff
Other services fall into a gray area. Parks with limited funds might scale back operations once reserves run out, offering only minimal support. Routine updates on road and trail conditions disappear, replaced by emergency notices if a situation threatens visitor safety. In short, while some outdoor spaces stay accessible, the experience of visiting a national park during a shutdown is far from normal.
Impacts On Rail Travel
While Amtrak does receive federal grants, passengers won’t see service disruptions due to the shutdown, as the company also generates revenue from ticket sales. However, long-term projects are already being affected.
The U.S. Department of Transportation announced in a news release that the Trump administration will withhold $18 billion in federal funding for two major New York projects — including the new Hudson River Tunnel Project — to “determine whether any unconstitutional practices are occurring.” The Department of Transportation continued by saying its review of these projects has been delayed because key staff were furloughed during the government shutdown, leaving no one available to conduct the review.
According to a report from ABC News, construction on the Hudson River Tunnel won’t stop right away. However, once funding runs out, that could change.
Impacts On Museums
Museums face a mix of outcomes during the shutdown. According to the American Alliance of Museums, the Smithsonian will be able to stay open through October 6, 2025, using reserve funds — but beyond that, its future depends on when Congress restores funding.
However, the Institute of Museum and Library Services (IMLS) has shut down entirely. This means it has stopped all grant-making and paused payments for discretionary programs until the agency is able to reopen.
These museum closures aren’t the first time a shutdown has disrupted the travel industry. The last major shutdown showed just how much damage it can cause.
When Was The Last Government Shutdown, And How Did It Affect Travel & Popular Tourist Attractions?
The longest shutdown in U.S. history happened in late 2018 and early 2019, lasting for 34 days. According to the American Alliance of Museums, the Smithsonian’s 19 museums closed their doors, losing about one million visitors and around $3.4 million in revenue from gift shops, concessions, and IMAX screenings. This money was never recovered. Additionally, the National Gallery of Art saw 334,000 fewer visitors and lost an estimated $1.2 million from its shops and restaurants. National parks also took a major hit, losing between $10 million and $11 million in revenue during the shutdown.
The second-longest shutdown lasted 21 days from December 1995 to January 1996. A report from the Center for American Progress found that 368 national parks were forced to close, losing seven million visitors and about $14.2 million per day in revenue. National museums also shut down, turning away an estimated two million visitors. On top of that, more than 200,000 U.S. passport applications went unprocessed, along with 20,000 to 30,000 visa applications each day from international travelers wanting to enter the United States.
Top Five Longest Government Shutdowns In U.S. History (via the House of Representatives)
Start Date
Duration (In Days)
President
December 21, 2018
34
Trump
December 15, 1995
21
Clinton
September 30, 1978
17
Carter
September 30, 2013
16
Obama
September 30, 1977
12
Carter
If the shutdown six years ago caused millions of dollars in losses to the travel and tourism industry, the current shutdown could be even more damaging — especially when international tourism to the U.S. is already struggling to recover from the decline that began earlier this year. So, what exactly are the possible economic impacts? In terms of a dollar amount, the estimates are remarkably high.
The U.S. Travel Economy Could Lose Billions During The 2025 Government Shutdown
According to Tourism Economics data referenced by the U.S. Travel Association, the U.S. economy stands to lose $1 billion every week in the event of major disruptions to air and rail travel, as well as national parks and museums. In a letter to Congress, U.S. Travel Association President and CEO Geoff Freeman emphasized just how dire the situation can become.
“A shutdown is a wholly preventable blow to America’s travel economy — costing $1 billion every week — and affecting millions of travelers and businesses while placing unnecessary strain on an already overextended federal travel workforce,” said Freeman.
He added that the longer the shutdown continues, travelers could experience longer TSA lines, more flight delays and cancellations, neglected national parks, and delays in travel infrastructure modernization projects.
The timing makes this shutdown especially damaging. Insights from Oxford Economics show that tourism in the U.S. is already under pressure in 2025, with international arrivals down 8.2% in the first half of the year. The World Travel & Tourism Council also projected in May that the U.S. will lose $12.5 billion in international visitor spending this year — a figure that is likely to grow if the shutdown continues.
Travelers Are Now Canceling Trips To The U.S. For Two Reasons
International tourism to the United States is already under pressure, as tensions tied to trade disputes caused many visitors to stay away. The steepest decline is from Canadian tourists, many of whom have stated that they won’t vacation in the U.S. again. Canadian travel to the U.S. has dropped 25.2% so far this year, including a steep 37% fall in land crossings in July and a 35.6% to 43% decline in air bookings compared to last year, according to Tourism Economics.
At the start of 2025, a study by market research consultancy Longwoods International revealed that 60% of Canadians said they were less likely to visit the U.S. due to its policies and politics. Additionally, 36% of Canadians canceled planned trips, while 29% opted to postpone their trips into the count.
Even travelers within the U.S. are likely to avoid travel due to practical risks, such as delayed passports, longer airport lines, and closed attractions like national parks and museums. In fact, a 2023 Ipsos survey found that 60% of Americans said they would cancel or avoid air travel during a shutdown, while 81% agreed that shutdowns damage the economy, and 86% stated that they inconvenience travelers.
Some are already changing their plans. Instagram influencer @pattipao1 told her followers she is canceling trips this week due to the uncertainty, saying:
“Here’s why I think everyone needs to cancel their flight plans for the next week. Just imagine if someone told you that you have to come to work, but you’re not getting paid for it. What would you do?”
Her words highlight the frustration and hesitation that many other travelers are experiencing. However, the question now is whether a prolonged shutdown, combined with declining sentiment toward the U.S., could eventually lead to a more permanent boycott of American travel.
