Nevada Lost $2.4 Billion in Economic Output During 2025 Federal Shutdown

Federal government shutdowns hit Nevada particularly hard due to the state’s heavy reliance on federal workers, contracts, tourism, national parks, and assistance programs. The fall 2025 shutdown was projected by the White House Council of Economic Advisers to cost the state roughly $2.4 billion in total economic output losses. Approximately $140 million in Gross State Product was lost per week during its six-week duration, with additional monthly impacts that included delays in $39 million in small business loans and $105 million in federal contract spending.

During the costly 2025 federal government shutdown, Nevada’s two Democratic U.S. Senators took markedly different approaches. Sen. Catherine Cortez Masto (D) consistently voted with Republicans to reopen the government from the outset, emphasizing the severe economic harm to Nevadans—including paused SNAP benefits for nearly 495,000 recipients and reduced tourism. Sen. Jacky Rosen (D), by contrast, aligned with Senate Democratic leadership and voted against funding measures for several months. She only joined her colleague in voting to end the shutdown once the extended impasse became untenable.

While the 2025 shutdown delivered the heaviest blow to Nevada, the 2018–2019 shutdown still inflicted an estimated $44 million in total economic losses on the state. The ongoing partial Department of Homeland Security shutdown in 2026, though narrower in scope with most essential functions continuing, is expected to further strain Nevada’s tourism, travel sector, and federal worker pay.