US Shutdown: Why did the US government cease operations after seven years? What is a shutdown? What will be its impact?

The US government has shut down. Republican lawmakers introduced a bill to temporarily fund the government until November 21st, but it failed to pass. Democratic lawmakers opposed this bill, leading to a shutdown and the first government funding freeze in the Trump administration's second term. A vote on the funding bill was held on Tuesday evening, but it failed by a 55-45 margin. The ruling Republican Party needed at least 60 votes to pass the bill.

What is a Shutdown?

The US fiscal year begins on October 1st. At the beginning of the fiscal year, the government prepares a budget and determines how government funds will be spent. If the US Congress fails to pass a bill funding the federal government by the stipulated date, the government shuts down. Such tensions over the budget are common in American politics, and the US government has been stalled several times in the past due to the failure to pass a funding bill.

What is the whole controversy?

President Trump's administration is cutting federal government spending and has taken several steps in recent months to reduce federal expenditures. However, a rift has arisen between the ruling Republican Party and the opposition Democratic Party over the Obama Healthcare Subsidy Program. Democratic lawmakers want to increase the Obama Healthcare Subsidy, but the Republican Party is unwilling to agree to this. This is why a funding bill could not be agreed upon. Negotiations were held between the government and the opposition to prevent a shutdown, but no agreement was reached.

What will be the impact of a shutdown?

A shutdown in the United States means the government has no money for expenses. This halts all government expenditures, including government employee salaries. Except for emergency services like medical, border security, and air services, all other services may be disrupted. In the last 50 years, the United States has experienced 20 shutdowns. The longest shutdown was in 2018, lasting 35 days. Due to the shutdown, approximately 750,000 federal employees will have to work without pay. This will disrupt many essential services. The shutdown will also halt US government food aid programs, federally funded schools, student loans, and national parks. The shutdown will also impact the US economy, and experts believe it could lead to a decline of 0.1 to 0.2 percent per week in US economic growth.

According to data from the US Congressional Research Service, the last shutdown occurred in December 2018, lasting 35 days. In January and February 2018, shutdowns also occurred for three days and one day, respectively. This marks a total of three government shutdowns in 2018. Prior to 2018, shutdowns occurred in 2013, twice in 1995, in 1990, and in 1987.