Explainer: Deadlock in Washington

The US government shutdown occurs when Congress fails to pass legislation to fund government agencies and operations, forcing non-essential services to halt and federal employees to be furloughed without pay.

What is a government shutdown?

A US government shutdown occurs when Congress fails to pass legislation (appropriations bills or continuing resolutions) to fund government agencies and operations for the next fiscal period.

Since the US Constitution gives Congress the “power of the purse”, federal agencies cannot spend money without congressional approval.

When funding lapses, non-essential government services halt and many federal employees are furloughed (sent home without pay).

Legal basis

Rooted in the Antideficiency Act (1884) — it prohibits federal agencies from spending money without Congressional approval.

Therefore, during a shutdown:

Only “essential services” like national security, air traffic control and emergency medical care continue.

“Non-essential” functions like museums, national parks and administrative offices suspend operations.

Causes of a shutdown

A shutdown typically happens due to:

1. Budget disagreement between the President and Congress (often between two parties).

2. Policy disputes tied to the budget (e.g., immigration, healthcare, climate, etc.).

3. Failure to pass spending bills or temporary extensions (continuing resolutions) by the start of the fiscal year (October 1).

What’s happening right now

The US federal government shutdown began on October 1, 2025 when Congress failed to pass continuing funding legislation for the new fiscal year.

As of November 5, 2025, the shutdown has entered its 36th full day, making it the longest government shutdown in US history.

The impasse is primarily between the Republican-controlled House of Representatives and Senate Republicans on one side and Senate Democrats on the other, with major disagreement over extending health-insurance tax credits under the Affordable Care Act (ACA) and the structure of a stop-gap funding bill.

Why this shutdown is historic

The previous record for the longest US government shutdown was 35 days, during December 2018-January 2019 under President Donald Trump, which ended on January 25 2019.

This 2025 shutdown surpasses that length, signalling a new high-water mark for gridlock in US fiscal/government funding politics.

Key distinguishing features

This shutdown involves a full government work-stop in many areas (no pre-approved funding covering many agencies).

The disagreement centres not only on funding levels but on major policy entanglements (i.e., healthcare subsidies) and legislative rule questions (e.g., the filibuster in the Senate).

Its consequences are significant and visible: delayed economic data releases, disruptions in welfare programmes, impact on travel/airports and broader uncertainty.

Key features & causes

Legal/constitutional backdrop

Under US law (especially the Antideficiency Act), federal agencies cannot spend money unless Congress has approved the appropriations. A lapse means many operations must stop or scale back.

The US Congress (House Senate) holds the power of the purse; the executive (President & administration) cannot unilaterally continue operations without funding.

Shutdowns are a feature of the US separation-of-powers system: Executive and Legislative branches (and even the Senate vs House) may be controlled by different parties and thus deadlock is possible.

Political & policy drivers

The 2025 shutdown is driven by a policy-funding mix: Republicans want a clean continuing resolution (CR) to reopen the government, while Democrats are pushing to tie reopening to extending ACA premium tax credits (and other healthcare supports) which are set to expire at end of year.

Senate procedural rules (such as the filibuster requiring 60 votes for many bills) complicate reaching consensus. The President (Trump) has called for abolishing or weakening filibuster to force funding through.

The House has passed Republican-backed short-term funding bills, but the Senate keeps rejecting them, meaning no budget or CR is approved.

Economic & administrative impact

Federal employees: many are either furloughed (sent home) or working without pay. Some agencies are shut; others operate at reduced capacity.

Welfare/social programmes: For example, food assistance benefits (the Supplemental Nutrition Assistance Programme/SNAP) have been disrupted/partially funded.

Economic data releases delayed: Key reports (employment, retail sales, home sales) from agencies like the US Department of Labour or US Census Bureau are delayed, affecting business and policymaker decision-making.

Broader economic uncertainty: Shutdowns reduce confidence, delay public spending, hurt services, may subtract from GDP growth.

International/strategic side: Reflects on US governance credibility, can affect spending on defence, aid, international institutions, etc.

Significance from comparative governance angle

Comparative governance: Unlike the US system, many parliamentary democracies (including India) have mechanisms (e.g., interim budget, “vote on account”) preventing full shutdown of government operations. Studying the US shutdown gives insight into how different systems handle fiscal impasses.

Federalism & power-sharing: The shutdown shows how federal government (at national level) functions under divided control (executive vs legislature) and how budgetary control becomes leverage. For India’s federal structure, it’s useful to compare funding stalemates.

Policy-budget interface: The fact that policy demands (like healthcare subsidies) are attached to funding bills shows how budgetary instrument becomes policy tool. Useful for understanding how governance, budget and policy interact.

Public administration/disruption: Real-world disruptions in service delivery, welfare programmes, employee morale, data flows — an administrative crisis as well as budgetary one.

Implications for economy & society: Highlights how budget gridlock in advanced economy still leads to very real social/economic costs — useful for debates on resilience, continuous financing, governance failures.

What to watch/what’s next

• Whether Congress (House Senate) will pass a short-term continuing resolution (CR) to reopen government temporarily — or whether a longer funding deal will be negotiated that includes the Democratic demands for ACA tax credits.

• Whether Senate procedural rules (filibuster) will be altered to allow stop-gap funding without traditional support.

• Impact on key services: for example if the Federal Aviation Administration (FAA) begins major flight-capacity cuts because of air-traffic-controller staffing issues.

• Economic cost: Losses to GDP, delayed statistical data, delayed policy responses to other issues (inflation, healthcare).

• Comparative lesson: How long can such a shutdown continue before the pressure forces resolution, and what institutional reforms might be pushed afterwards.

Summary for revision

• What is: A lapse in funding by Congress leading to shutdown of many federal operations because agencies cannot spend without appropriation.

• Current case: Began Oct 1, 2025, now (Nov, 5) entered Day 36 — longest in US history.

• Why: Deadlock over funding and policy (healthcare subsidies) procedural hurdles (filibuster) divided government.

• Impacts: Federal worker furloughs, delayed benefits, delayed data release, economic uncertainty, service disruptions.

• Why important: Highlights separation-of-powers consequences, role of budget in policy, real-life governance disruptions, comparative lessons for other democratic systems (like India).

• What to watch: Resolution path, economic cost, institutional reform, political fallout.