States Most & Least Affected by the Government Shutdown: A Summary of WalletHub’s Findings

WalletHub’s latest “Government Shutdown Report: Most & Least Affected States” compares how the current funding lapse (which began on October 1, 2025) is reverberating across the country. Using five indicators—share of federal jobs, federal contract dollars per capita, real estate’s share of gross state product, the percentage of families receiving SNAP, and access to national parks—the study translates complex exposure into a single, comparable score for each state and the District of Columbia. Independent coverage of the report details these metrics and their weights, providing a clear window into WalletHub’s methodology and its emphasis on labor dependence and procurement flows. (LiveNOW)

The top-line result will surprise few in federal circles: Washington, D.C. ranks as the most affected jurisdiction. With over one quarter of its workforce tied directly to federal employment and the highest federal contract dollars per capita, the District’s economy is unusually sensitive to furloughs and delayed obligations—reflected in an overall score reported in the mid-70s on WalletHub’s 100-point scale. Hawaii and New Mexico follow close behind, combining sizable federal footprints, high SNAP participation, and, in Hawaii’s case, a large real-estate share of state output and heavy exposure to national park operations—all channels through which a shutdown constrains income, spending, and mobility. (Federal News Network)

At the other end of the distribution, states such as Minnesota, Iowa, and Indiana appear least affected in WalletHub’s ranking. These states generally feature smaller proportions of federal workers and lower per-capita contract flows, buffering them from the most immediate fiscal and operational shocks that accompany a lapse in appropriations. Several outlets summarizing the report also note cross-state contrasts—such as differences in SNAP reliance or federal jobs shares—that help explain why some regions feel the strain more quickly and intensely than others. (Michigan Business Network)

Context underscores the salience of WalletHub’s scoring. As the shutdown extends, outside estimates place the national economic drag at roughly $400 million per day, compounding the localized effects measured in the study. Agency slowdowns and suspensions—from consumer protection to housing finance—widen the practical footprint of the funding halt, delaying mortgages, contract performance, and routine public services. These macro indicators frame WalletHub’s rankings not as abstractions but as early signals of where stalled federal activity most rapidly translates into lost paychecks, deferred procurement, and constrained community services. (The Washington Post)

Methodologically, the report’s five-metric structure serves two purposes. First, it captures direct exposure (jobs and contracts) that immediately tighten household and firm balance sheets when appropriations lapse. Second, it incorporates channels through which shutdowns propagate indirectly—real estate slowdowns and national park disruptions that dampen transactions and tourism. The double weighting of federal employment and SNAP participation reported by secondary coverage appropriately elevates labor income and household vulnerability in the composite score, sharpening the ranking’s relevance for policymakers and local planners seeking triage priorities while the impasse persists. (LiveNOW)

Credit: Report by WalletHub (research team). Key details on rankings, metrics, and impacts are summarized here from independent coverage of WalletHub’s “Government Shutdown Report: Most & Least Affected States.” (Federal News Network)

Disclaimer: This summary is for information only and reflects reporting available as of October 22, 2025. It is not legal, financial, or policy advice. While care was taken to accurately represent WalletHub’s findings and related coverage, readers should consult the original sources for the latest data and interpretations. (Federal News Network)