The Association for a Better Long Island (ABLI) — which represents owners of $15 billion in regional property — recently warned that the ongoing federal shutdown will cause “enormous economic damage” to Long Island.
Addressed in a letter sent Thursday, October 9st, to Long Island’s four-member congressional delegation, ABLI detailed widespread economic consequences tied to the shutdown, which first took effect at the beginning of the month on October 1st.
“A federal government shutdown is not a harmless administrative pause,” said Kyle Strober, ABLI’s executive director. “It is an active drain on our region’s economic health.”
The letter outlined multiple risks to the region. Small businesses are struggling with delayed SBA loans and guarantees, cutting off vital operating capital and “stifling job creation and paralyzing growth initiatives across Nassau and Suffolk counties.”
An estimated 31,000 federal employees on Long Island face furloughs or job loss, and consumer spending is expected to drop due to uncertainty. Consequently, business revenue and municipal budgets are left with no choice but to prepare for a substantial hit.
ABLI noted that sales tax makes up 45% of Suffolk County’s total revenue. Therefore, a prolonged spending slowdown could significantly impact local government services, the group warns.
Infrastructure and development uncertainty is another grave concern. Long Island relies heavily on federal funding for transit, clean energy, and environmental projects.
With the shutdown freezing review, approval, and the reimbursement process as a whole, projects with the potential to yield long-term economic growth instead become indefinitely delayed.
“The current situation demonstrates that every American—regardless of socio-economic status, political ideology, or the size of their business—is impacted by a federal government shutdown,” Strober continued.
“It compromises the financial security of workers, weakens the viability of large and small businesses, and undermines the public trust in governing institutions.”