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State and national business community warns of consequences of government shutdown

With Congress missing the midnight deadline to fund the federal government, leaders from across the business community are warning of the significant economic consequences a shutdown would have on employers, workers, and families. From delayed contracts to shuttered national parks, industry groups say the disruption would ripple through Arizona’s economy and beyond.

Arizona Âé¶¹´«Ã½Ó³»­ of Commerce & Industry: “Arizona’s economy thrives on stabilityâ€

The Arizona Âé¶¹´«Ã½Ó³»­ of Commerce & Industry is urging swift congressional action to pass a continuing resolution and keep the government open.

“Arizona’s economy thrives on stability,†said Âé¶¹´«Ã½Ó³»­ President and CEO Danny Seiden. “Prolonged debates that put government operations at risk create ripple effects of uncertainty for employers, workers, and investors alike. The effects of that uncertainty would extend across our economy, delaying critical government contracts and ultimately threatening both Arizona’s industries and the nation’s economic security. We urge Congress to act swiftly to avoid self-inflicted setbacks that weaken America’s competitiveness at home and abroad.â€

Arizona Lodging & Tourism Association: National parks at risk

The Arizona Lodging & Tourism Association warned that a shutdown would deal a devastating blow to Arizona’s tourism economy, particularly if it forced the closure of national parks such as the Grand Canyon, Petrified Forest, and Saguaro National Park.

“Families, student groups, and international travelers plan their trips around access to our national parks,†said AzLTA President and CEO Kim Grace Sabow. “If visitors are turned away, the economic ripple effects will extend far beyond park boundaries, hurting hotels, restaurants, attractions, and local businesses. Arizona thrives because of tourism, and keeping our parks open is essential to safeguarding the jobs and economic vitality that so many Arizonans depend on.â€

Tourism is one of Arizona’s largest industries, supporting nearly 300,000 jobs and generating more than $33 billion annually. The Grand Canyon alone drew nearly 5 million visitors in 2024, supporting more than 8,700 jobs and generating over $1 billion in positive economic activity.

National Association of Manufacturers: Certainty needed for growth

In Washington, the National Association of Manufacturers (NAM) emphasized the critical role a functioning government plays in supporting industrial growth.

“A functioning government is essential for a strong manufacturing economy,†said NAM President and CEO Jay Timmons. “Manufacturers need certainty, not disruption. Our leaders in Washington must come together and keep the government open, so it continues working for the American people. From supply chains and permitting to regulatory certainty, product approvals and facility inspections, manufacturers rely on the government to do its job and provide the stability that drives growth.â€

U.S. Âé¶¹´«Ã½Ó³»­ of Commerce: “Shutdowns are harmful to the economyâ€

The U.S. Âé¶¹´«Ã½Ó³»­ of Commerce also issued a warning, noting that shutdowns affect more than just government employees.

“Government shutdowns are harmful to the economy, our national security, and the American people, often in ways that are not immediately obvious,†said Neil Bradley, executive vice president and chief policy officer at the U.S. Âé¶¹´«Ã½Ó³»­. “From passports and permits to clinical trials and air travel, a well-functioning economy requires a functioning government. The Âé¶¹´«Ã½Ó³»­ calls on Congress and the Administration to work together to pass legislation to avert a federal government shutdown.â€

Photo courtesy Flickr user reivax, CC BY-SA 2.0 , via Wikimedia Commons

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