The Congressional Budget Office has released a report that assesses the effects of the five-week partial government shutdown on the federal budget and economy.
CBO estimates that the partial shutdown resulted in the delay of federal discretionary spending worth approximately $18B for the procurement of goods and services, compensation and other government services, according to the report.
The agency projects that total net discretionary funding for shutdown-affected agencies reached $329B in fiscal 2019, which accounts for about 25 percent of the total federal discretionary funding.
The shutdown reduced real gross domestic product by $3B in the fourth quarter of 2018 and will lower GDP by $8B in the first quarter of 2019, according to CBO’s projections.
CBO’s report also cited other potential effects of the shutdown, including its effect on government hiring efforts.
“Funding lapses were probably beginning to reduce the credibility of the federal government as an employer and a contracting party, making it more difficult for federal agencies to attract and maintain a talented workforce and more expensive to enter into contracts with private firms,” according to the report.
“The shutdown will likely have a long-lasting impact on an entire generation of early-career millennials and cause them to re-evaluate their motivations to serve their country,” he said.
“This will be particularly noticeable in cybersecurity as there is a significant workforce shortage and the private industry is ripe and ready for them with massive salary advantages.”
The government shutdown temporarily ended Friday, Jan. 25, after President Donald Trump signed a continuing resolution that would fund agencies through Feb. 15.