Minnesota Is ‘Least Affected’ State During Federal Government Shutdown

ST. PAUL, MN — As the U.S. weathers its 15th day of the federal government shutdown, a new report finds Minnesota is feeling it less than almost anywhere else in the country.

According to personal finance website WalletHub, Minnesota ranks 51st overall, dead last, in how much the ongoing 2025 federal government shutdown is affecting residents.

The state’s relatively small share of federal jobs and contracts makes it one of the least dependent on federal spending and employment.

The shutdown, now stretching into its third week, stems from disputes over spending limits, foreign aid cuts, and health care subsidies.

WalletHub estimates the partial closure is costing the U.S. economy roughly 400 million dollars per day and affecting more than 1.6 million federal employees, including 900,000 furloughed workers.

Minnesota’s economy, however, has been somewhat insulated. The report found that the state ranks near the bottom in several key categories tied to shutdown vulnerability:

• 49th in share of federal jobs
• 50th in federal contract dollars per capita
• 50th in access to national parks

In contrast, the District of Columbia, Hawaii, and New Mexico top the list as the most affected, due to their higher percentages of federal employees and government contract dollars.

WalletHub analyst Chip Lupo said states with more federal workers, contractors, or residents on programs like SNAP face the harshest immediate consequences.

"The latest government shutdown makes life stressful for people across the U.S., but places like D.C. and Hawaii are getting hit the hardest," he said.

While Minnesota may be feeling fewer direct effects, national impacts such as delayed tax refunds, paused federal housing loans, and interruptions to small-business services could still ripple into the state’s economy if the stalemate drags on.

WalletHub analyzed data from the U.S. Census Bureau, Bureau of Labor Statistics, usaspending.gov, the National Park Service, and other federal sources to rank all 50 states and D.C.

10 Most Affected States (worst hit by the 2025 government shutdown)

1. District of Columbia – 76.33

2. Hawaii – 71.63

3. New Mexico – 71.31

4. Alaska – 70.32

5. Maryland – 67.94

6. Virginia – 59.06

7. West Virginia – 51.52

8. Alabama – 45.49

9. Oklahoma – 40.87

10. Arizona – 39.98

10 Least Affected States (least impacted by the shutdown)

42. Arkansas – 21.47

43. North Dakota – 21.41

44. Kansas – 19.94

45. New Jersey – 19.68

46. Wisconsin – 19.05

47. New Hampshire – 16.24

48. Nebraska – 16.14

49. Indiana – 15.86

50. Iowa – 13.90

51. Minnesota – 12.77

Even as the least-affected state, Minnesota is still seeing measurable strain. According to WalletHub’s data, the shutdown is costing the state an estimated $264 million in gross state product each week, or about $1.1 billion per month.

Roughly 33,000 federal employees, about 1.1 percent of the workforce, are furloughed or working without pay.

Delays in federal activity have also paused around $71 million in Small Business Administration loans and reduced federal contract spending by $77 million. If the shutdown extends beyond 30 days, it could disrupt SNAP benefits for 452,000 Minnesotans, including 175,000 children, and slow overall consumer spending by about $295 million per month.