January 28, 2019

The longest government shutdown in history may have ended, but its damage to the economy is far from over.

Throughout the 35-day shutdown prompted by President Trump's demand for border wall funding, 800,000 federal employees went unpaid and six government departments went unfunded. That cost the American economy $11 billion, $3 billion of which will never be recovered, an analysis released Monday by the Congressional Budget Office reveals.

The nonpartisan CBO calculated that the shutdown caused a federal discretionary spending to drop $18 billion in a little over a month. That led the GDP in the last quarter of 2018 to drop by $3 billion, or .1 percent. The GDP in the first quarter of 2019 is then expected to drop another $8 billion, or .2 percent, per the report. That GDP drop will mostly rebound by the end of fiscal year 2019, but an estimated .02 percent of America's annual GDP will not , the CBO says.

Beyond the impact of federal government spending losses, the CBO also noted "much more significant effects on individual businesses and workers." About 800,000 federal workers didn't receive paychecks for five weeks, and federal contractors won't receive any at all. That caused them to spend less at "private-sector entities," some of which "will never recoup that lost income," the report says.

A separate CBO economic outlook report released Monday also found that, if taxation and spending remains unchanged, the federal deficit will grow to an annual total of $1 trillion in next decade. Read more about it at The Week. Kathryn Krawczyk

2:26 p.m.

Maryland Gov. Larry Hogan (R) suggested he isn't pleased with the current state of the Republican Party on Sunday, telling NBC News' Chuck Todd that it "bothers me" that Republicans have to "swear fealty" to former President Donald Trump "or you get kicked out." The GOP, he said, has become a "circular firing squad where we're just attacking members of our party instead of focusing on solving problems" or debating the Biden administration on policy.

Rep. Adam Kinzinger (R-Ill.), another Republican who isn't afraid to criticize Trump, had a different analogy for his party: the Titanic. "We're ... in the middle of this slow sink," he told CBS News' John Dickerson, later arguing that many of his colleagues trying to move on to quickly from reckoning with the Jan. 6 Capitol riot. Tim O'Donnell

1:52 p.m.

Minneapolis Federal Reserve President Neel Kashkari doesn't think people should "overreact" to the disappointing April jobs report, but he acknowledged the "bottom line" is that "we are still somewhere between 8 and 10 million jobs below where we were before" the coronavirus pandemic struck. "We still are in a deep hole," he told CBS News' John Dickerson on Sunday's edition of Face the Nation. "And we still need to do everything we can to put those folks back to work more quickly."

So how did economists' predictions miss by so much? Kashkari explained that the pandemic "is unlike any other shock in our lifetimes" because the economic recovery relies so heavily on individuals' assessments of personal safety. "It's very hard to model that out," Kashkari said, noting that people have spent so much time "conditioning" themselves to take precautions. Now, though, "we have to start to change what we've been telling people," he said, agreeing with an earlier point from former Food and Drug Administration Commissioner Scott Gottlieb. "People feeling safe about the virus" will ultimately drive the economic recovery, Kashkari said. Tim O'Donnell

1:01 p.m.

House Minority Leader Kevin McCarthy (R-Calif.) made public the inevitable on Sunday, telling Fox News' Maria Bartiromo that he supports Rep. Elise Stefanik's (R-N.Y.) bid for GOP conference chair.

The No. 3 House position is currently held by Rep. Liz Cheney (R-Wyo.), but she appears to be on the way out after clashing with many of her colleagues over the future of the party, particularly regarding whether former President Donald Trump should play a role. Cheney is one of the most prominent Trump critics within the GOP, and while McCarthy maintained his support for her for a while, he has recently made it clear that he considers her stance to be a hindrance to party unity, which is why he's backing Stefanik, a Trump loyalist, albeit one with a much more mixed voting record than the consistently conservative Cheney.

Stefanik thanked McCarthy for his endorsement. The conference chair vote is expected to take place Wednesday. Tim O'Donnell

12:35 p.m.

What a difference a week makes.

Last Saturday, trainer Bob Baffert was celebrating his record-breaking seventh Kentucky Derby victory. Flash forward to Sunday, and he's been suspended from entering horses at Churchill Downs, which announced Sunday that Baffert's 2021 Derby-winning trainee, Medina Spirit, tested positive for the anti-inflammatory drug betamethasone. The steroid isn't completely banned in Kentucky horse racing, but Medina Spirit's post-race blood sample reportedly was found to have double the legal threshold, which is why Baffert received the punishment.

It appears Medina Spirit will be tested again, so the win is still valid, but if the findings are upheld the horse and Baffert will be stripped of their victory, and Mandaloun, the runner-up, will be crowned.

Baffert has denied involvement and said he's not sure how Medina Spirit could have tested positive. "This shouldn't have happened," he said. "There's a problem somewhere. It didn't come from us."

It's not the first time one of Baffert's horses have registered positive drug tests, however. The New York Times has reported that his horses have failed at least 29 tests in his 40-decade career, including two last year. Read more at The Courier-Journal and The Associated Press. Tim O'Donnell

11:10 a.m.

A bombing at a girls' school in Kabul, Afghanistan, on Saturday killed at least 50 people, many of them students between 11 and 15 years old, The Associated Press reports. Tariq Arian, a spokesman for Afghanistan's Interior Ministry, said more than 100 people were wounded in the attack, but cautioned that casualty figures could still rise.

The Taliban denied responsibility for and condemned the attack, which took place as the U.S. continues its withdrawal from Afghanistan, although Arian blamed the group. The bombing occurred in the Dasht-e-Barchi neighborhood, where many residents are of the ethnic Hazara minority, a mostly Shiite group that has been targeted by Islamic State loyalists in the past.

Frustrated by what they consider inadequate government protection, Hazara leaders from Dasht-e-Barchi met Sunday and decided to create their own protection force, which would be deployed outside schools, mosques, and public facilities, AP reports. The force would cooperate with the government. Read more at The Associated Press and The New York Times. Tim O'Donnell

8:25 a.m.

Tesla CEO Elon Musk poked fun at himself during his Saturday Night Live monologue, joking about his lack of "intonational variation," his marijuana-themed appearance on Joe Rogan's podcast, the spelling of his son's name, and some of his odder tweets.

"Look, I know I sometimes say or post strange things," Musk said, seemingly addressing the controversy surrounding the show's choice to have him host. "But that's just how my brain works. To anyone I've offended, I just want to say: I re-invented electric cars and I'm sending people to Mars in a rocket ship. Did you also think I was gonna be a chill, normal dude?"

Musk also revealed he has Asperger's syndrome, reportedly marking the first time he has spoken publicly about the diagnosis. Watch the full monologue below. Tim O'Donnell

7:46 a.m.

China's Long March 5B rocket crashed back to Earth on Sunday morning, landing in the Indian Ocean just west of the Maldives, the China Manned Space Emergency Office announced. Most of the debris from the rocket, which was launched in April, reportedly burned up when it re-entered the Earth's atmosphere.

The risk of the rocket causing significant damage was considered low, but experts were concerned because the 40,000-pound Long March was out of control and traveling at a high speed, making it very difficult to predict where it would land.

While it appears the worst was avoided (it's unclear if any debris landed on the Maldives, CNN notes), NASA Administrator Bill Nelson still expressed displeasure with Beijing. "Spacefaring nations must minimize the risks to people and property on Earth of re-entries of space objects and maximize transparency regarding those operations," he said. "China is failing to meet responsible standards regarding their space debris."

Jonathan McDowell, an astrophysicist at the Harvard-Smithsonian Center for Astrophysics who tracked the rocket, tweeted that regardless of the outcome, China was still "reckless." Read more at CNN and NBC News. Tim O'Donnell

See More Speed Reads