America in Stalemate – Understanding the Longest U.S. Government Shutdown

Figure 1: Stop the Shutdown Rally - Washington D.C., January 2019

43 days of uncertainty left millions waiting, federal workers at a standstill, and no pay. American federal workers and citizens felt, and are still facing, the repercussions of the longest government shutdown in U.S. history. The nation is left asking: How did this happen? What happens next? 

What is a government shutdown?

The United States is the only country with a government that fails to keep funding going when budgets are not passed. A government shutdown happens when the U.S. Congress fails to pass necessary spending bills, or when the Senate approves the bills but the President fails to sign them by the deadline that funds federal agencies and operations. The shutdown is primarily the fault of political leaders as it results from Congress failing to reach a political agreement, rather than from administrative limitations. When failed or unsigned, the government then has no authority to spend money. Therefore, numerous operations slow down or stop completely. Operations are slowed down or stopped due to the furloughing of federal workers, and government-funded activities are paused.

Why did it happen? / How to resolve it. / How long will the government stay open again?

The shutdown began on October 1, 2025, the start of the U.S. fiscal year. Congress had failed to pass 12 required spending bills before September 30th (the end of the previous fiscal year). Congressmen disagreed over budget priorities and policy disputes, most notably regarding healthcare subsidies and spending preferences. 

Many congressional Democrats withheld their support for the 2025 spending bills because they argued that the proposed funding failed to safeguard healthcare and social programs. Their main concern was the expiration of the Affordable Care Act subsidies, cuts to Medicaid, and other initiatives that would leave Americans unprotected. Refusing to advance the bills, Democrats used the shutdown as political leverage to secure what they considered essential for public health and social welfare. 

Normally, to avoid a lapse in government work, Congress passes a continuing resolution bill. This bill is temporary funding until Congress votes again. After 43 days, the Senate advanced a temporary funding bill, which compromised the GOP and Democratic priorities. Only needing 60% of the congressional votes, only six Democrats voted yes in support of the bill. The bill reopened most federal funding, resumed pay, and funded areas such as the veterans’ program, agriculture department, and the legislative branch for the remainder of the fiscal year. However, the bill did not extend the Affordable Care Act subsidies or address cuts to domestic programs. Overall, the temporary funding stabilized federal operations but it failed to protect the core policies that caused the shutdown. 

Congress will vote again on February 1, 2026, as the bill provides funding through the end of January. 

Who is affected?

During the shutdown, over 670,000 federal workers were furloughed while 730,000 continued to work without pay. Around four paycheck rounds were missed, leaving federal workers applying for loans or receiving emergency support. All statistics and numbers on the 2025 government shutdown can be found at the Partnership for Public Service. 

Government contractors and small businesses lost federal funding, resulting in billions of dollars lost in aid or loans. Food aid, visa and passport processing, grants, benefits, and so many more public services were paused or delayed. 

The most significant subsidy disagreement is with the Affordable Care Act (ACA). The ACA was put in place during the Obama administration, making healthcare more affordable and covering more medical needs. The government’s financial support helped make healthcare under the ACA affordable. Since Congress did not agree to extend these subsidies at the end of the shutdown, healthcare will soon have higher costs, which could result in over 15 million Americans without coverage due to its lack of affordability. 

What are its global effects?

Now you may be asking, “I’m not an American citizen or a federal employee (or maybe you are), so why should I care about what’s happening there?” Well, the shutdown has impacts beyond its borders. As we are still tracking the long-term effects of the 2025 shutdown, this is what we can assume from a global perspective: economic data delays, global-aid disruption, and an impact on global supply chains and trade. 

So far, the Trump administration has fostered many concerns among its allies. As this is President Trump’s second government shutdown, international ties are weakening as global instability is feared. Cutting ties with the U.S. could result in the country becoming isolated. Or foreign countries will adopt isolationist policies, avoiding political and economic alliances. According to the Congressional Budget Office (CBO), the 2025 shutdown will cause a temporary loss of about USD 11 billion to the U.S. GDP. To explain in simpler terms, when the government shut down, some work stopped. That work can’t be continued or completed after the government reopens. Therefore, the country has lost about USD 11 billion worth of economic activity. But the CBO estimates that $7 to $14 billion will not be recovered. 

The 2025 shutdown has ended, but its impact will last longer than the 43 days of stillness. This reveals how deeply Americans rely on a functioning government, how political disputes disrupt families, businesses, global stability, and trust in leadership. The ripple effect of the shutdown shows how connected the U.S. is to the rest of the world, but when will the rest of the world leave the U.S. behind? 

As Congress approaches the next funding deadline in February 2026, the citizens are left hoping their leaders have learned from this crisis and will prevent history from repeating itself. What happens in the upcoming months will not only shape federal operations but also the lives of millions who depend on a government that works for its country.