It’s midnight in Washington, and the US federal government has officially entered a shutdown.
Hundreds of thousands of workers will now be placed on unpaid leave, and many federal programs will pause indefinitely.
The shutdown was triggered after lawmakers failed to agree on a stopgap spending bill before the midnight deadline. This marks the first federal shutdown since 2018, highlighting a deep political divide that neither party appears ready to bridge.
Republicans and Democrats Trade Blame
Within minutes of the shutdown, both parties launched into a furious blame game.
From Democrats:
- Congressman Bill Foster accused Republicans of “sabotaging government functions” since they control the House, Senate, and White House.
- Representative Joe Morelle called the situation “a direct result of brutal and incompetent leadership.”
- California Governor Gavin Newsom posted a photo of Trump on X, calling him “a weak man who can’t even climb stairs, let alone lead a country.”
From Republicans:
- The Republican Conference shared a video of Capitol lights turning off, claiming Democrats “put illegal migrants before hardworking Americans.”
- Rep. Chuck Fleischmann blamed Democrats for “officially shutting down our government.”
- Rep. Dusty Johnson called the situation “stupid” and accused Democrats of “gambling with workers’ paychecks.”
Markets React Cautiously to Shutdown
Peter Hoskins — Business Reporter, Singapore
Global investors are taking the shutdown in stride — for now.
Markets across Asia-Pacific opened mixed as traders looked past the Washington drama, seeing the shutdown as a temporary disruption.
- Nikkei 225 (Japan): Down 1% after weak business sentiment data.
- Nifty 50 (India): Higher after the central bank kept rates on hold.
- Dow Jones: Closed at a record high yesterday, though US futures now point to a weaker open.
Meanwhile, gold surged to a record $3,872/oz, signaling rising investor caution. The US dollar hovered near a one-week low.
Shutdown Could Cost $400M Per Day
A letter from Congressional Budget Office director Phillip Swagel estimates that up to 750,000 federal employees may be furloughed daily, costing roughly $400 million per day.
Agencies may adjust staffing as the shutdown continues, but essential military and security operations will remain active — though military personnel won’t get paid until the government reopens.
Members of Congress, however, will still receive their paychecks, as mandated by the Constitution.
The scale of the shutdown’s impact on the federal workforce is striking. New data shows how furloughs vary sharply across government agencies, with departments like the FCC, NSF, EPA, and Education furloughing more than 90% of their employees. In contrast, agencies tied to national security, such as Defense and Homeland Security, are keeping a larger share of staff on duty. Overall, about 43% of the federal workforce is furloughed, underscoring the widespread disruption to government operations and services across the country.
How Long Could This Last? A Look at Past Shutdowns
Shutdowns have become more common in recent decades.
- Trump’s 35-day shutdown (2018–2019) remains the longest in history.
- Clinton’s 1995 shutdown lasted 21 days during a budget clash with a Republican-led Congress.
- Obama’s 2013 shutdown lasted 16 days over healthcare funding.
- Reagan oversaw eight short shutdowns in the 1980s — none lasted more than three days.
With both parties dug in, analysts warn this standoff could rival previous records if neither side backs down.
Air Travel Could Face Delays
Airlines warn that extended shutdowns strain the entire system. During the 2018 shutdown, air traffic controllers worked without pay, security staff shortages caused long lines, and several airports experienced delays.
Airlines for America, an industry group, urged lawmakers to “keep the government open to ensure smooth travel for millions of Americans.”
National Parks and Museums Brace for Closures
It remains unclear whether US National Parks will remain open. Conservation advocates are urging closures to avoid the damage seen in 2018, when vandalism and theft surged at unstaffed parks.
The Smithsonian announced it has enough funds to stay open for one week, keeping its popular museums running through October 6.
Political Standoff Shows No Sign of Easing
Republicans insist they’ve offered a “clean funding bill” that Democrats are blocking for political gain. Democrats argue they’re defending critical healthcare subsidies and resisting “irresponsible cuts.”
Neither side has proposed new negotiations as of this hour. With pressure building, both parties are waiting to see who blinks first.
📝 Summary So Far:
- Shutdown began at midnight after budget talks collapsed.
- Both parties are blaming each other fiercely.
- Markets are steady but cautious.
- Shutdown could cost $400M daily and impact flights, parks, and government services.
- Historical trends suggest shutdowns can last days—or weeks—depending on political pressure.
Resources:
https://x.com/
https://knowledgenexuses.com/
