Government Operations Subcommittee Hearing:Government Shutdowns: Contract Killers
- The longest shutdown in the federal government’s history ran 35 days, from midnight on December 22nd through January 25th. The shutdown was the 3rd federal government funding gap of the Trump Administration.
- In addition to the 400,000 federal employees affected by the shutdown, approximately 800,000 contractors from 10,000 companies that support and enhance the government directly felt its negative effects.
- Federal employees rightly received back pay for the days they were furloughed, but many contractors – who support, supply, or sit directly next to these federal employees – received no similar recompense.
- These contractors live and work in every state in the nation, including:
- NASA contracts worth $7.9 million per week in Huntsville, Alabama and Cape Canaveral, Florida.
- Virginia’s 11th Congressional district includes an estimate of at least 70,000 contractors, representing over 16% of the employed workforce.
- In the National Capital Region, federal contracts pump $66 million into the local economy every week.
- The U.S. Chamber of Commerce estimated that the shutdown had an adverse effect on at least 41,000 small businesses across all 50 states, costing them more than $2.3 billion in lost revenue.
- Many affected contractors were low-wage employees, including security guards, janitors, and other service workers.
Roger A. Krone
Vice President, SEIU 32BJ
President, TKI Coffee
President, Local 2061 ,International Association of Machinists and Aerospace Workers
President & CEO, Professional Services Council
CEO, Advanced Concepts & Technologies