Government shutdown could cost U.S. economy up to $14 billion: CBO

The shutdown of the U.S. federal government could cost the economy up to $14 billion, depending on how long it lasts, the Congressional Budget Office said Wednesday.

The shutdown, now in its fourth week, will result in the loss of at least $7 billion of gross domestic product by the end of 2026 as a result of furloughed federal employees working fewer weeks, the CBO said.

And the cost will grow the longer the shutdown drags on, CBO Director Phillip Swagel told U.S. House Budget Committee Chairman Jodey Arrington, R-Texas, in a letter.

A six-week shutdown will cost the economy $11 billion, and an eight-week shutdown will cost $14 billion, Swagel said.

Senators remain pessimistic about the chances of reaching a bipartisan deal to reopen the government despite the effects of the shutdown becoming more painful for the American people.

Sen. Thom Tillis, R-N.C., told NBC News on Wednesday that he saw no evidence of a breakthrough.

Oregon Democratic Sen. Ron Wyden, meanwhile, accused the White House of slamming the door on talks to end the impasse.

The shutdown began on Oct. 1 after Senate Republicans and Democrats failed to reach a short-term funding agreement to keep the government open.

Democratic senators are insisting that Republicans agree to extend enhanced Affordable Care Act health insurance subsidies before they will vote for funding that would reopen the government.