Tomeka B. Scales, Ph.D.
Director, Media Engagement & Communications
media@pscouncil.org

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PSC Applauds End of the Longest-Ever Government Shutdown, Urges Policymakers to Address Long-Term Damage to Federal Contractors and Missions

Shutdown Impact Tracker | Shutdown Fact Sheet | PSC Shutdown Experts 

Arlington, Va. (November 12, 2025) -- The Professional Services Council (PSC) welcomes the end of the recording-breaking 43-day federal government shutdown. PSC also notes that the road to recovery will be long, as public servants and federal contractors alike seek to re-start the engine of government. 

“Industry commends Congress and the White House for restoring appropriations,” said PSC CEO James W. Carroll. “Yet we know from history that departments and agencies—and their contracting partners—will continue to feel the impact of this shutdown for months to come. For example, there are challenges in digging out from back-logged invoices, rescinding stop work orders, and flowing payments throughout the supply chain. These challenges can be significant.” 

PSC’s Shutdown Fact Sheet notes that for each calendar day the government is shut down, it takes 3-5 days to restart operations to pre-shutdown levels. Thus, PSC estimates that recovering from shutdown-related disruptions could take the federal enterprise more than four months (mid-March 2026). PSC urges department and agency officials to take specific steps to accelerate recovery of operations: 

1. Re-start invoice processing and payments as quickly as possible in order to flow money from prime contractors to subcontractors, vendors, and the broader business base that supports federal missions. In many cases, invoices have stalled for weeks while civil servants, who were responsible for accepting, validating, and paying them, were furloughed.  
2. Rescind stop work orders, which have frozen contractors’ work on government programs, as quickly as possible to help get American workers back on the job more quickly. 
3. Take contracting actions, such as awards, task orders, and options, to help infuse the federal marketplace with much-needed work—and confidence in federal contracts. 

“Through no fault of their own, millions of American workers have gone more than six weeks without a paycheck. Unlike civil servants and military personnel, there is currently no federal mechanism to support backpay for contractors,” said PSC President Stephanie Sanok Kostro. “Since October 1, some employees may have decided to work in the commercial sector rather than risk work tied to uncertain federal funding. As the government reopens, it’s critical that agencies pay invoices and restart work swiftly—and thus send a strong message that contractors and their work for the American people are valued.” 

Regarding the financial impact of the shutdown, the annualized quarterly growth rate of real gross domestic product (GDP) in the fourth quarter of calendar year 2025 is estimated to be 1.5 percentage points lower after six weeks in a government shutdown, according to the Congressional Budget Office. Although most of the decline in real GDP will eventually be recovered, between $7 billion and $14 billion (in 2025 dollars) will be permanently lost.  

“The shutdown put real people and real missions at risk,” said PSC Board Chair Zach Parker, President, CEO, and Board Director of DLH Corp. “As the government reopens, it’s critical that policymakers consider the unique impacts on the contracting community and take steps to prevent this kind of unnecessary disruption from happening again. Restart priorities and processes are also critical to retain military and public readiness as well.” 

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About PSC
The Professional Services Council (PSC) is the leading trade association and advocate for the government contracting industry, representing more than 400 member companies—ranging in size from start-ups to multinational organizations. These companies support federal agencies with mission-focused services and solutions and collectively employ hundreds of thousands of American contractor personnel across all 50 states, contributing trillions of dollars to the U.S. GDP. Learn more at: www.pscouncil.org.