By Matthew Holloway |
The White House Council of Economic Advisers (CEA) released a memo on Friday, detailing the state-level impacts of the government shutdown imposed by congressional Democrats and detailing the projected effects. The effects on Arizonans could be profound if the shutdown is not resolved quickly.
According to the Council of Economic Advisers, Arizona could face a decline of $296 million in Gross State Product each week or approximately $1.3 billion per month, and an increase in unemployment of about 1,000 people. Around 58,000 federal employees, or about 1.8 percent of Arizona’s workforce, could face furlough without pay.
For Arizona seniors and those who receive SSI disability benefits, they will be “likely delayed for those that(who) receive their Social Security benefits by check instead of direct deposit,” per the CEA. In Arizona, approximately 6,200 seniors currently receive their benefits by check.
If the shutdown extends beyond 30 days, the Supplemental Nutrition Assistance Program (SNAP) benefits of 887,000 total enrollees, including 344,000 children, could be impacted.
However, the council warned that families relying on WIC are at greater risk of disruption, saying, “Due to the government shutdown, federal funding for the Women, Infants, and Children (WIC) program stops immediately and becomes reliant on very limited local contingency funding. If the government shutdown is prolonged, those reserves are likely to run out by the end of the first week. In Arizona, there are approximately 153,000 WIC recipients who rely on the program for nutritional support for themselves and their children.. “
Seventy-six million dollars in small business loans, such as those made available to the victims of the Dragon Bravo and White Sage Fires, could also be delayed. Federal contract spending is expected to lose approximately $560 million should the shutdown persist for one month. Overall, the council warns that Arizona could lose $15 billion in GDP each week the government is shut down — a crisis that will ripple across every state.
Kush Desai, a White House Spokesperson, said in a statement emailed to AZ Free News, “President Trump and Republicans remain committed to ensuring families receive the support they deserve. Sadly, Democrats have chosen to shut down the federal government for political purposes…The Democrats’ shutdown is hurting the American people and letting millions of Americans’ livelihoods hang in the balance. Democrats need to vote on the clean, bipartisan funding extension.”
In a press release issued Thursday, Arizona Congressman Abe Hamadeh (R-AZ08) explained that Congressional Democrats are ultimately responsible for this shutdown. He stated, “This nonpartisan funding bill, passed 13 times under Biden, was rejected by Democrats solely due to their opposition to the new president. Their shutdown halts critical services like benefits for Veterans, military pay, and national security programs.”
Hamadeh added, “As the White House points out, the Democrats proposal would require Medicaid to pay more for emergency care provided to illegal aliens than it does for American patients who are disabled, elderly, or children.’ That is unacceptable. We can no longer afford to fund the results of the Biden Administration’s broken border scheme. Americans deserve a functioning government, and House Republicans delivered by voting to keep it open. Yet, Democrats voted to shut it down, prioritizing free healthcare for illegal immigrants over American citizens’ needs.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
