Why Utah Is Less Vulnerable To Federal Shutdowns Than Others

According to a recent analysis by WalletHub, Utah ranks 31st among the states most affected by the federal government shutdown, placing it on the less-impacted side of the spectrum. The 2025 Government Shutdown Report: Most & Least Affected States compared all 50 states and the District of Columbia, examining how reliant each is on federal spending, jobs, and services.

WalletHub’s ranking was based on five key categories: the share of federal jobs in each state, federal contract dollars per capita, the percentage of families receiving SNAP benefits, the contribution of real estate to state GDP, and access to national parks. States with large federal workforces or heavy dependence on government contracts and social assistance ranked higher in vulnerability.

D.C. Most Affected

The District of Columbia topped the list as the area most affected, followed by Hawaii, New Mexico, Alaska, Maryland, and Virginia—all states with significant federal employment or contract ties. On the opposite end, Midwestern states such as Iowa, Minnesota, and Indiana were the least affected. Utah’s placement near the middle suggests a balance between federal reliance and private-sector resilience.

National parks such as Zion and Bryce Canyon remain open and operating under the federal government despite the ongoing shutdown. In the past, however, Utah has taken proactive steps to fund and staff its parks when federal closures have threatened visitor access. State leaders have also indicated that if the current shutdown were to expand or impact park operations, Utah is prepared to again use state resources to keep these major destinations open. That willingness underscores the importance of outdoor tourism to Utah’s economy, especially in gateway communities like Springdale and Moab.

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WalletHub’s analysis estimates that approximately 1.6 million federal employees nationwide are impacted, through furloughs or unpaid work, and that the U.S. economy may lose hundreds of millions of dollars each day the shutdown continues. However, Utah’s relatively diversified economy and low reliance on federal contracts help cushion those effects.

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The report highlights that while no state is immune to the disruption of a prolonged shutdown, Utah’s combination of public-private balance and local adaptability keeps it from landing among the hardest hit. As federal operations pause, Utah’s ranking reflects both the state’s economic strength and its ability to endure periods of uncertainty.