Government Shutdown Could Cost Nevada Millions
Another potential federal government shutdown looms as Congress stalls on passing a funding bill. The familiar partisan gridlock—Senate Democrats rejecting a Republican-majority funding proposal—drives the stalemate. Unlike past shutdowns, proposed cuts under Reduction-in-Force plans could more severely slash non-essential federal jobs. Analysts see a high risk of a shutdown, though a last-minute deal remains possible. Nevada’s economy, heavily reliant on federal dollars, is particularly vulnerable to these disruptions.
Federal funds make up nearly 28% of Nevada’s budget, supporting everything from healthcare to infrastructure. A repeat of the 2018-2019 shutdown, which cost Nevada $44 million, could hit even harder, disrupting tourism, jobs, and state resources.
Nevada’s Medicaid program is safe from immediate cuts due to mandatory funding, but administrative delays could slow new enrollments or waiver approvals, straining state budgets. Similarly, the Children’s Health Insurance Program risks delays in federal oversight.
A federal shutdown would halt discretionary grants, disrupting key Nevada programs. Federal Title I and program funds for low-income schools in Clark and Washoe Counties could face delays, jeopardizing teacher hiring and student services. Section 8 vouchers and Community Development Block Grants, aiding over 20K households, may stall, exacerbating housing shortages in Las Vegas and Reno HUD. Infrastructure projects, like Interstate 15 upgrades and rural broadband expansions, could pause, cutting construction jobs and stunting economic growth.
Nevada’s tourism industry would also faces severe disruption if national parks close. Great Basin, Death Valley, and Lake Mead could shut down, costing rural towns like Baker and Pahrump millions weekly in lost revenue from lodging and dining. The 2018-2019 shutdown saw vandalism and environmental damage at open but unstaffed parks, a risk Nevada can not afford.
Nevada’s 14K federal employees, including those at Nellis Air Force Base and BLM offices will be effected. Non-essential workers could be furloughed.
Also, Over 400K Nevadans rely on SNAP, averaging $250 monthly per household. Benefits are secured for the first 30 days, but a prolonged shutdown could disrupt EBT card issuance, overwhelming Las Vegas food banks.
The 2018-2019 shutdown, lasting 35 days, cut $11 billion from the national GDP, with Nevada losing $44 million from tourism declines and delayed contracts. With 85% of its land federally owned, Nevada’s reliance on federal stability is undeniable. A 2025 shutdown could deepen economic wounds, stalling recovery in this tourism-driven state. As the deadline nears, Nevada’s U.S. Senators, Democrats Catherine Cortez Masto and Jacky Rosen, hold pivotal votes to keep the government open. Residents brace for potential disruptions to jobs and services, hoping Congress averts a crisis that could jeopardize Nevada’s economic situation.
