CBO projects $14B economic loss from shutdown as Mike Johnson calls Democrats 'irredeemable'

WASHINGTON, DC: The ongoing government shutdown could cost the economy anywhere between $7 billion and $14 billion, according to a new analysis by the Congressional Budget Office (CBO) published on Wednesday, October 29. 

The agency said the longer the shutdown continues, the deeper the damage will be.

While most of the losses could eventually be recovered once government operations resume, the CBO cautioned that economic activity at the end of 2025 will be lower as a result of the shutdown.

Johnson slams Democrats as ‘irredeemable’

The CBO attributed the decline to fewer federal services being provided, temporary cuts in spending and benefits like SNAP, and a drop in aggregate demand that would hurt the private sector. 

“The effects of the shutdown on the economy are uncertain. Those effects depend on decisions made by the administration throughout the shutdown,” the CBO said. 

Meanwhile, at a press conference on Capitol Hill on Wednesday, House Speaker Mike Johnson lashed out at Democrats for prolonging the impasse, calling them “irredeemable.” 

Johnson accused Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries of “eating up the clock” instead of engaging in negotiations on a continuing resolution to fund the government.

“I think Chuck Schumer and Hakeem Jeffries are irredeemable at this point,” Johnson said.

“I have given up on the leadership. We are trying to appeal to a handful of moderates or centrists who care more about the American people and will put the people's interests over their own and will do the right thing in the Senate,” he added. 

Johnson claims Democrats are influenced by Mamdani

Johnson also tied the deadlock to Democratic politics in New York, claiming that Schumer and Jeffries were influenced by Zohran Mamdani.

“Mamdani looks like he’s going to win and become the mayor of New York City, and Hakeem Jeffries came out and endorsed him,” Johnson said. “That’s all you need to know.”

The speaker reportedly dismissed suggestions that the House might need to pass another short-term funding bill before the November 21 deadline, arguing it would be “futile.”

“If I brought the House back and we passed another CR, it would meet the exact same fate from Chuck Schumer,” he explained.

Johnson insisted that responsibility for the shutdown lies with Senate Democrats.

"This fault is squarely on the shoulders of the Democrats. They are the ones causing you the pain, and don’t ever let them forget it," he added.

Meanwhile, Schumer reportedly said he would vote for a Republican-led bill to extend SNAP benefits during the shutdown, urging Senate GOP leadership to bring it to the floor.

“There’s a bill right now from Sen Josh Hawley, a conservative Republican, that could ensure SNAP is funded. It has Republican and Democratic support. It’s a bill that I’d happily support and vote for,” he claimed on the Senate floor.

But Senate Majority Leader John Thune reportedly rejected the idea of considering standalone bills, insisting that the Senate will not take them up while the broader funding stalemate continues.