New CTP Report Puts FAA Actions During 2025 Government Shutdown Under the Microscope

Daily Economic Impact of More than $150 million

Arlington, VA (January 5, 2026)—Today, the Center for Transportation Policy (CTP) released a new report, Stabilizing the Skies: Lessons from the Longest Government Shutdown in U.S. History, examining how the Federal Aviation Administration (FAA) responded to staffing shortages during the recent historic government shutdown. Specifically, the report places a spotlight on the FAA’s decision to impose blanket flight reductions at 40 of the nation’s major airports.

While the approach was well-intentioned, CTP finds that these across-the-board cuts failed to account for critical differences in airport staffing levels, congestion, and operational complexity. As a result, more than 9,000 flights were canceled, over 6 million passengers were impacted, and the U.S. economy took an estimated $7.25 billion hit—more than $150 million per day. The report identifies policy missteps, including the FAA’s limited transparency around the reductions, and recommends a more targeted, data-driven strategy for managing aviation operations during future funding lapses.

Read the full report here.

“The 2025 government shutdown backed the FAA into a corner but, with the benefit of hindsight, our analysis shows that blunt flight cuts made by the agency likely caused more harm than good,” said Jackson Shedelbower, executive director of CTP. “A more targeted approach combined with increased transparency would have allowed the FAA to keep the skies safe without unnecessarily grounding the economy.”