The United States Government shuts down for the first time in six years - The suspension of numerous programs and services

Washington entered a new phase of uncertainty as most federal agencies were forced to suspend operations starting at 12:00 a.m. on October 1. This marks the 15th shutdown of the United States Government since 1981, and the first since the record-long 35-day crisis in 2018–2019.

Despite tense negotiations in Congress ahead of the September 30 deadline - the end of the 2024–2025 fiscal year - the two parties failed to reach a consensus. The sharp confrontation between the Democratic Party and the Republican Party pushed the budget agreement into a deadlock.

President Trump, in his second term at the White House, declared his readiness to take “irreversible actions” to exert pressure on the opposition. This also marks the third time during his presidency that the federal government has run out of funds.

Approximately 750,000 federal employees have been placed on mandatory furlough, with some facing the risk of permanent job loss. Sectors such as education, the environment, and many public services will be suspended, while the program for illegal immigrants will continue. The monthly employment report, scheduled for release on October 3, may be delayed or canceled.

Goldman Sachs has warned that this government shutdown may generate stronger negative impacts than previous ones, as there are currently no signs of any substantive negotiations taking place to resolve the deadlock.

The most recent shutdown of the U.S. government lasted from December 22, 2018, to January 25, 2019, spanning 35 days - the longest in history. The Congressional Budget Office (CBO) estimated the economic loss at approximately USD 3 billion in GDP. At that time, nearly 800,000 federal employees were affected, with many not receiving their salaries on time.

The concept of a “government shutdown” first emerged in the early 1980s, when the Department of Justice under President Jimmy Carter ruled that federal agencies were not allowed to continue operations without an approved budget. Since then, the United States has experienced 15 shutdowns, most of which were closely tied to fierce budget disputes.

The Trump administration and Republican leaders are proposing a temporary measure: extending government spending until November 21, in order to gain additional time for negotiating the budget for fiscal year 2025–2026. However, the possibility of reaching an agreement remains uncertain, as the political climate in Washington grows increasingly divided.