As the U.S. faces its 11th government shutdown since 1976, new data reveals which states are bracing for the hardest impact — and where New York stands in the mix.
New report ranks shutdown impact by state
WalletHub analyzed how each state is affected by the ongoing government shutdown, using five key metrics:
- Share of federal jobs
- Federal contract dollars per capita
- Real estate’s share of the state’s economy
- Access to national parks
- Share of families receiving food stamps (SNAP)
These factors reflect the shutdown’s potential to disrupt local economies, especially where government spending and services are deeply embedded in daily life.
States most and least affected by the shutdown
According to the report, Washington D.C., Hawaii, and New Mexico are among the states most impacted. These areas either have large federal workforces, heavy dependence on SNAP programs, or significant tourism tied to national parks.
WalletHub analyst Chip Lupo explained:
“Places like D.C. and Hawaii, where a high percentage of residents work directly for the government or have government contracts, are getting hit the hardest.”
He added that states with many SNAP recipients or national parks could also see fallout if the shutdown continues and critical funding dries up.
New York ranks low on shutdown impact
Despite its large population, New York ranks 35th overall in terms of shutdown vulnerability:
- 46th – Share of federal jobs
- 45th – Federal contract dollars per capita
- 29th – Real estate as a percentage of GSP
- 33rd – Access to national parks
- 6th – % of families receiving SNAP
That last metric—SNAP reliance—raises concern, even though New York scores low on most other measures. If the shutdown drags on and funding for food assistance programs is delayed, it could disproportionately hurt vulnerable families.
Why some states are in crisis mode
The severity of impact boils down to how deeply federal money is embedded in a state’s economy. For example:
- New Mexico has a high rate of SNAP dependency and federal employment.
- Hawaii is home to many federal contracts and has national parks that are tourism drivers.
- D.C. has the highest concentration of federal workers in the nation.
Meanwhile, real-estate-dependent states are facing mortgage delays due to stalled federal processing, adding another layer of stress for homebuyers and sellers.
What happens if the shutdown continues?
If the shutdown drags on:
- SNAP benefits could be delayed or disrupted.
- Federal employees may miss paychecks.
- National park closures could impact tourism-heavy regions.
- Government contractors may pause operations, affecting local economies.
New York may be insulated in some ways—but families relying on food assistance could feel the sting quickly if political gridlock doesn’t end soon.
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