Chamber: Shutdown Has Cost Federal Contractors $12B

The U.S. Chamber of Commerce is urging Democrats to reopen the federal government after releasing a report showing that more than 65,000 small-business federal contractors lost $12 billion in October alone due to the ongoing shutdown.

The Chamber sent the report and a letter to Congress on Thursday, outlining that 65,500 small businesses across all 50 states provided more than $155 billion worth of goods and services to the federal government in 2024.

Now, they're losing about $3 billion a week.

"For many of these small businesses, federal contracts represent a sizable portion of their overall revenue. Navigating federal contracting rules can be complicated, but once done, a federal contract can be a reliable source of revenue. That is until there is a government shutdown," Neil Bradley, executive vice president and chief policy officer at the Chamber of Commerce, said in a letter attached to the report.

Unlike furloughed federal employees who will receive back pay once the government reopens, many small businesses won't recover those losses — though the Congressional Budget Office noted that some of the funding could eventually be recouped, CNBC reported.

"When the government reopens, rarely are contractors made whole," Bradley wrote. "The purchase of many goods may only be delayed by a government shutdown, though some are permanently forgone."

Senate Democrats this week voted for the 13th time against a continuing resolution, holding out for a deal on Obamacare subsidies set to expire Dec. 31, and opposing the $1.5 trillion in healthcare and Medicaid reforms enacted by Republicans — including provisions affecting emergency health coverage for illegal migrants — in President Trump's Big, Beautiful Bill.

In its letter, the Chamber urged them to reconsider.

"The Chamber is again calling on Congress to immediately pass the continuing resolution to reopen and fund the government. We also urge Congress to consider ways to help make federal contractors, especially small business contractors, whole," Bradley's letter concluded.

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