US Government Shutdown & the state of its Budget

Paper: GS – II, Subject: International Relations, Topic: Global Issues, Issue: US Government Shutdown.

Context:

The US faced its longest government shutdown due to Congress failing the budget deadline, exposing political polarization and institutional rigidity amid rising deficits, growing public debt, and higher interest payments.

Key Takeaways:

About The United States Government Shutdown:

  • A government shutdown occurs when Congress fails to pass legislation to fund federal agencies and programs before the fiscal deadline.
  • Without an approved budget, most non-essential government operations are halted, and millions of federal workers go unpaid.

Why shutdowns occur?

  • Budget impasse: Political deadlock between Republicans and Democrats over funding priorities.
  • In 2025: Dispute centered on expanding pandemic-era healthcare subsidies and opposition to spending cuts in social and health programs.
  • Constitutional process: Congress must approve a spending bill and send it to the President for signature; failure to do so leads to shut down.
US Budgetary Process:

History:

  • Number of Shutdowns: Since 1976, the United States has experienced 22 federal government shutdowns, ranging from brief funding lapses to prolonged political standoffs.
  • First Shutdown: The first official shutdown occurred in 1976 during President Gerald Ford’s tenure after Congress failed to pass key spending bills on time.
  • Longest Shutdown: The 2025 shutdown, lasting 36 days and counting, has become the longest in U.S. history, surpassing the 35-day closure during Donald Trump’s first term (2018–2019).

State of US Finances:

State of US Finances:

The US shutdown reveals presidential system flaws causing political deadlocks and fiscal challenges, while highlighting India’s parliamentary system’s advantage in ensuring governance continuity and avoiding government paralysis.

https://indianexpress.com/article/explained/explained-economics/us-govt-shutdown-the-state-of-its-budget-10364518/lite

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