On October 1st, the United States government entered another Shutdown era after a dispute between Republicans and Democrats over the approval of the 2026 budget bill. The bill also provided for an increase in funding for federal agencies.
But the shutdown is nothing new to Americans. Seven years ago, in December 2018, the same year Donald Trump was serving his first term as president of the United States, the longest shutdown in American history occurred, lasting 35 days.
At the time, the shutdown was due to Trump’s controversial plan to build a wall on the border with Mexico to curb immigration into the US. While the stories are different, the impacts are still the same.
What is it?
A “shutdown” is the term used to describe the closure of the United States federal government when Congress fails to reach a consensus on the following year’s budget. During these periods, various government activities are interrupted, with only services classified as essential remaining in operation, such as public safety, border control, and part of the aviation system.
Some of the US government’s social media accounts announced the suspension of activities:
This time, the shutdown focuses on the impasse between Republicans and Democrats on healthcare. Democrats say they will only approve the budget if expiring health services programs are extended.
Republican allies of Donald Trump, however, argue that healthcare and federal funding issues should be discussed separately. They accuse Democrats of using the budget as a bargaining chip to serve partisan interests ahead of the 2026 midterm elections, which will determine control of Congress.
Impact on the United States
With the government unable to spend, the shutdown disrupts numerous public services and directly affects thousands of employees. Around 750,000 employees are furloughed, while those working in essential areas continue their duties but may have their salaries temporarily suspended.
The shutdown could also directly impact turists. The Federal Aviation Administration (FAA) announced that approximately 11,000 employees will be sent home during the shutdown. Meanwhile, around 13,000 air traffic controllers will have to continue working, even without pay.
Still in the tourism sector, national parks, museums, and zoos administered by the federal government may also close or operate with reduced indoor operations. Tourist icons such as the Statue of Liberty in New York and the National Mall in Washington, D.C., will temporarily suspend visits during the shutdown.
In the security sector, the work of FBI agents, the National Guard, and other federal forces will continue as usual, as will the operations of border patrols and immigration services. However, at the Pentagon, more than half of the 742,000 civilian employees will be temporarily furloughed. Official visits by heads of state and foreign officials scheduled during this period are expected to be canceled. Approximately 2 million military personnel will remain on active duty, ensuring the country’s defense.
Global Impact
The shutdown affects not only the United States but also has significant global repercussions. When essential services are shut down, economic data is no longer released, and regulatory agencies suspend some of their activities, depriving companies and governments in other countries of crucial information for decision-making. Furthermore, flight and freight delays in the US end up impacting airlines and supply chains across the globe.
The environmental impact is also being felt globally. Renewable energy projects have been postponed, and the largest solar park planned in the US has been canceled, delaying international climate goals. Furthermore, the shutdown creates uncertainty in the markets. Without updated data on employment, inflation, and production, investors and governments in other countries need to rethink their strategies, which could affect economic policies, investments, and even international trade.
The shutdown in the United States, already considered the third-longest in the country’s history, highlights how domestic political decisions can have profound and lasting impacts, both for public servants and the general population. The shutdown affects essential services, jeopardizes security and the domestic economy, and creates a scenario of uncertainty that extends beyond the country’s borders. President Donald Trump’s statement shows that the crisis is not only administrative, but also political, with potential strategic consequences for various sectors.
Furthermore, the effects of the shutdown reverberate globally. Production chains, international trade, investments, and environmental policies are influenced by the instability in the United States, highlighting the interdependence between economies and societies in today’s world.
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The article above was edited by Maria Clara Polcan.
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