WASHINGTON
The US is experiencing its longest federal government shutdown as Republicans and Democrats failed to agree on a budget, while the paused operations of the federal government affect the economy.
The US federal government shut down on Oct. 1, as Congress did not approve of a temporary budget bill to fund the government before the start of the new fiscal year, so federal agencies lost their spending authorities and are unable to continue activities.
On Tuesday, the 14th vote in the Senate failed to reach 60 votes to pass a temporary budget bill — as of Wednesday, the duration of the government shutdown surpassed the previous record, which was during US President Donald Trump’s first term.
The federal government shutdown has entered its 36th day on Wednesday, and it remains one of the most significant issues on the agenda. Democrats are demanding that health insurance subsidies be extended, while Republicans insist on a temporary budget bill that does not include any changes to the current spending.
Trump blames Democrats for the shutdown and says he is ready to negotiate with them if the Republican temporary budget bill passes Congress.
Trump said over the weekend that he plans to end the shutdown by keeping voting on a budget, noting that Democrats will ultimately have to vote.
The president also wants to eliminate the 60-vote “filibuster” requirement so that Republicans can finance the government without needing Democrats to vote. Despite a Republican majority of 53 seats out of 100 in Senate, they still need Democrats to vote on bills like the budget to be able to pass it.
The 36-day federal government shutdown placed federal workers on unpaid leave, while personnel in key services like the military, intelligence, public hospitals, airports, and prisons continue to work. Essential federal personnel are unable to receive their wages, while disruptions to services are being felt in areas ranging from national parks to food assistance.
The US Department of Agriculture said earlier this week that food assistance for November would be partially funded by the Supplemental Nutrition Assistance Program, which feeds 42 million people, following a ruling requiring its continuation.
Trump said on Tuesday that the food aid would resume if Democrats simply voted to reopen the government, according to a post on his social media platform Truth Social.
Meanwhile, air traffic controllers continue to work without being paid, and that is leading to shortages in support services, which thereby cause flight delays.
White House spokesperson Karoline Leavitt said more than 13,000 air traffic controllers continue to work without pay during a press conference on Tuesday.
US Transportation Secretary Sean Duffy said we will see “mass chaos” if the government remains closed for another week, while parts of the US airspace may be forced to be closed due to a lack of controllers.
- Federal government shutdown’s economic cost
The 35-day federal government shutdown in 2018-2019 reduced the US gross domestic product (GDP) by a total of $11 billion, with $3 billion permanently lost, according to the Congressional Budget Office (CBO) estimates.
Prolonged shutdowns affect private sector investments and employment decisions as businesses cannot access federal permits and certifications, or benefit from federal loans — the shutdown also disrupts the economic data calendar, which means that the release of critical data like employment and inflation is put on hold, fueling uncertainties in markets.
Last week, the CBO said the cost of the federal government shutdown could reach $14 billion, depending on its duration.
By the end of 2026, the financial impact of putting federal workers on unpaid leave is estimated to cost $7 billion in a four-week period, $11 billion in a six-week scenario, and $14 billion in eight weeks.
The US GDP is also expected to decline by 1 to 2 percentage points in the quarter, depending on the duration of the shutdown.
- Longest of federal shutdowns
The US has seen 10 shutdowns lasting three days or less since 1981, while some four long-term shutdowns affected federal government operations.
The first two shutdowns were in 1995–1996 during the Clinton administration, which lasted five days in November and 21 days in December to January.
The Obama administration saw a 16-day shutdown in October, 2013, while Trump’s first administration saw a 35-day shutdown beginning on Dec. 22, 2018, and ending on Jan. 24, 2019.
Trump had refused to sign a temporary budget that excluded the funding for the wall on the Mexican border, which led to a partial shutdown after the Democrats refused to back down. The current shutdown surpassed the duration of this one, so becoming the longest of federal shutdowns.
Meanwhile, it is unclear when the federal government will return to its regular operations.
Republicans and Democrats refuse to compromise on the budget, which complicates the process. The disagreement between the two parties causes concern over the sustainability of essential services.
