Top 10 States Hurt by the Government Shutdown
With America two weeks into the government shutdown temper tantrum, politicians have mostly acted like spoiled children — retreating to their rooms of incompetence and only coming out to collect their allowances. The standoff is costing taxpayers millions of dollars per day, with some states feeling the effects more than others.
In order to gauge which parts of the nation are taking the biggest financial hits from the shutdown, WalletHub conducted a study by using several key data sources, including federal workers and contract dollars per capita, small business lending per capita, social security payments per capita, and number of veterans per capita. Interestingly, the report finds that states won by the Republican Party in the 2012 presidential election could feel the most pain with a prolonged government shutdown, as 15 Red States ranked in the top 25.
“There will be plenty of angry constituents for politicians to answer to,” said Odysseas Papadimitriou, WalletHub and CardHub CEO. “Let’s just hope they get the message before we set the economic recovery back too far or allow partisan politics to ruin America’s good name with investors worldwide.” Here’s a look at the top 10 states or regions affected by the government shutdown, or areas that will be affected in the case of a prolonged shutdown, according to WalletHub.
Hawaii is the tenth most affected state. It ranks number one in the real estate category due to the large role housing plays in the local economy. Staffing shortages at the Federal Housing Administration and the inability of lenders to verify income via tax returns could deliver a blow to loan closings during the government shutdown period.
Idaho is the ninth most affected state. It also ranks ninth for the state with the most federal contracting dollars per capita, and eighth for Small Business Administration loans. During the furlough period, non-excepted employees at the SBA will no longer be permitted to utilize SBA email or other federal resources — delaying the loan process.
Colorado is the eighth most affected state. It has heavy exposure to federal contracting dollars and Small Business Administration loans.
7. New Mexico
New Mexico is the seventh most affected state. It ranks sixth in states with the most federal employees per capita, and fourth in states with the most federal contractors.
Maryland is the sixth most affected state. It has the second highest amount of federal employees per capita, and the fourth most federal contract dollars per capita. Furthermore, Maryland is the third state most heavily exposed to the real estate market.
Maine is the fifth most affected state. It has heavy exposure to SBA loans, social security funding, and real estate. Maine is also the fifth state with the most veterans per capita.
Read More: Your Cheat Sheet to the Debt Ceiling Debacle
4. District of Columbia
The capital of the United States is not a state, but still worth mentioning since it’s at the epicenter of the political temper tantrum. It ranks fourth overall, and is the most affected area of the nation when it comes to federal employees per capita.
Alabama is the third most affected state. It ranks fourth in states with the most Social Security funding, and eight for the most FAFSA applications per capita. While the shutdown hasn’t affected social security payments, benefits could be interrupted if the shutdown drama bleeds into the debt ceiling debacle and Congress fails to raise the debt limit.
Alaska is the second most affected state. It ranks third in states with the most federal employees per capita and federal contracting dollars per capita. It’s also the fourth most affected state by disruption of SBA loans, and contains the most veterans per capita of any state. Veteran Affairs estimates that 3.8 million veterans will not receive their disability payments next month if the government shutdown extends into late October.
Virginia is considered to be the state most affected by the government shutdown. It has heavy exposure to federal employees and federal contracting dollars. Virginia also has the second most veterans per capita.
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