Washington, D.C. – The federal government shutdown that began on October 1 is expected to severely impact the U.S. travel industry, with the U.S. Travel Association warning of potential losses exceeding $1 billion per week. The disruption comes after Congress failed to approve a spending package for the new fiscal year, triggering a partial closure of federal agencies.

More than 11,000 Federal Aviation Administration (FAA) employees have been furloughed, while 13,000 air traffic controllers are required to continue working without pay. Although training for new controllers will proceed, thin staffing at major hubs, including New York City, raises concerns about delays and operational disruptions.

The U.S. Travel Association also anticipates longer lines at Transportation Security Administration (TSA) checkpoints, increased flight cancellations, and deteriorating conditions at national parks. Iconic tourist sites, such as the Grand Canyon, could face temporary closures, with state officials warning they cannot sustain operations without federal support. To highlight the growing economic impact, the association has launched a travel spending loss tracker to monitor the effects of the shutdown.

Industry insiders warn that the timing could exacerbate existing challenges. Many tour operators and hospitality workers are already struggling due to a decline in Canadian travelers, a key market that has been hesitant amid political uncertainty.

“While essential employees, including air traffic controllers, must continue to work, doing so without pay can create operational inefficiencies and stress across the travel network,” said a spokesperson for the U.S. Travel Association. “The ripple effects will be felt by travelers, airlines, hotels, and local economies nationwide.”

With the federal shutdown showing no immediate resolution, both domestic and international travelers are advised to monitor updates closely, as delays, closures, and cancellations may affect itineraries across the United States.