Image via Politico
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“God Bless America,” a saying every American has stated in their lives, but has God blessed America? If America is so fortunate, why is our government again facing another shutdown? Why are our political parties so afraid to back down to the other for the greater good of all Americans? On October 1st, the U.S. Government faces another shutdown if lawmakers cannot come to an agreement on the funding bill for healthcare mandates and conditions.
Government shutdowns have been a part of American politics since the 1980s. In recent years, they have accelerated dramatically. The most recent shutdown occurred during 2018-2019 over funding for the Border Wall that divides Mexico and the U.S. This shutdown was the longest in history, stretching over 35 days. As a result of this, 25% of the government funding had been slashed, about 800,000 federal workers were forced to work without pay or put on temporary leave, immigration courts shut down, and air travel was delayed as Transportation Security Administration and Federal Aviation Administration workers were forced to work without pay, leading to “sick-outs.” The Congressional Budget Office had estimated that the shutdown cost the economy around $11 billion in total output, with $3 billion being permanently lost, due to activities that could never be recaptured. GDP in Q4 for 2018 had a hit of .01% and the Q1 for 2019 was .02%. This affected not only federal workers’ paychecks but also regular citizens, as many had delayed tax refunds and missed paychecks.
Once again in 2025, the same thing is happening. This time, it’s focused on a continuing resolution (CR). A CR is a temporary funding measure to extend the federal spending at the current level. At the same time, the House (Republicans) had tried to pass a CR to keep the government funded up to November 21st, 2025. The Democrats had competed and opposed this by offering to extend funding up to October 31st, 2025, with the addition of permanently extending specific Affordable Care Act (ACA) subsidies and reversing Medicare cuts. However, both measures had failed within the Senate, with the House failing to pass a “Clean CR” by a 44-48 vote, while the Democrats failed to pass a “Rider CR” by a 47-45 vote. On top of this, President Trump had canceled negotiations, accusing Democrats of “Political theater,” furthering any diplomatic solution that could be reached.
This time, the consequences are not only for the American citizen but also the judiciary system, federal workers, and the US market. The US judiciary has already warned that it will be unable to sustain full paid operation after October 3rd, forcing many court staff into furlough while judges continue to work on their constitutional obligations. Meanwhile, the White House Office of Management and Budget has already instructed agencies to prepare for mass firing plans, stepping beyond the usual absence model and putting permanent job cuts on the table. Additionally, about 300,000 federal civilian employees have been slated to leave the workforce by the end of 2025, meaning that the shutdown will accelerate job losses because of the reception.
With the shutdown, the stakes are higher than ever for the economy and markets. A prolonged shutdown this late into the fiscal year could delay the publication of crucial economic reports such as monthly employment, inflation, and retail sales, leaving the Federal Reserve and investors to “fly blind.” According to TD Economics, statistical agencies would halt regular releases of Labor market and GDP data, which business analysts and policymakers rely on to make decisions. The regulatory agencies, such as the US Securities and Exchange Commission (SEC), will be forced to operate with limited staffing, causing slower approvals for corporate registration, new rules, and enforcement action. Northern Trust analytics warned that by the end of 2025, forced layoffs would be greater than the previous shutdown. Such dismissals would disrupt the capital markets and investor confidence, as permanent job losses have become part of the risk, primarily due to the increase in unemployment within the last half of the decade.
Meanwhile, the federal government will take a direct hit regarding spending contracts, new awards, contract modifications, and procedural processes, as they will most likely stall, cutting off revenue flows to private firms dependent upon government work and government funding. Under the new United States Office of Management and Budget guidelines for federal employees, they potentially face permanent layoff. Many have reported that they have received no concrete instructions yet, causing increasing uncertainty within the government. Moreover, air traffic control would halt in the travel sector as staffing shortages and delayed flights would cost the economy an estimated $1 billion per week in lost travel revenue. Federal loans and grant programs for small businesses and student aid would slowly freeze access to credit for thousands of households and firms. In past years, around 800,000 federal workers were impacted by the shutdown, as some were required to work unpaid and others were permanently laid off. These delays rippled outwards, and nowadays contractors and agencies believe that it would affect local businesses as they would lose foot traffic, tax revenues would decline, and the IRS enforcement, auditing, and refunding processes would slow down, squeezing public finances.
If this shutdown brinksmanship becomes the new normal, Americans will not only be rocketing through unpredictable crises, but their trust in the government will chip away. Neither party can escape its blame for this, as Republicans positioned themselves as guardians of fiscal discipline. At the same time, Democrats cast themselves as defenders of social welfare. Still, both continue to play with the lives of federal employees, contractors, and citizens who rely on public services. This standoff speaks to the deeper performance of political art and not the responsibility of the everyday American.
In 2025, the Office of Management and Budget has told its agencies to prepare for a reduction in force (RIF). This level of aggression has not been seen in prior shutdowns because the federal workforce has been shrinking. Between September 2024 and March 2025, civilian staffing has fallen by 1% with departments like agriculture and interior losing more than 7% of their staff. Additionally, the Trump administration aims to eliminate more than 300,000 federal worker positions overall as agencies have received orders to reduce headcount significantly. Maryland officials even warn that an additional 10,000 jobs could vanish during a shutdown. The Republicans’ insistence on a “clean CR” without policy writers presents their commitment to fiscal responsibility; however, their approach has effectively weaponized essential government operations, using them as leverage to secure their policies on funding or Medicare. This consequence affects ordinary Americans who forgo mass layoffs and halted programs because lawmakers prioritize government over partisan advantage.
Meanwhile, while Democrats advocate for preserving healthcare funding, they have failed to negotiate this expectation to prevent a shutdown. The inclusion of expanded healthcare provisions within the Democrats’ version of the CR, coupled with the Republicans’ insistence on having a clean CR, has turned what should be a straightforward funding measure for American citizens into an ideological battle for victory. They have prioritized the symbolic wins attributed to their political party instead of their practical responsibility of keeping federal agencies open and functioning. Democrats and Republicans have allowed the federal government to remain in a state of paralysis, allowing economic instability and public frustration. These political parties have not only done what is better for themselves but have shown no care or consideration for what the American citizens have to endure.
Americans are struggling economically and politically, while their government counterparts, whom they believe would improve the country, have only been fighting over one situation that could have been resolved by now. Both parties focus more on scoring points for their own cause than saving citizens who rely on government funding. The House vote illustrates that neither the Republicans nor Democrats have passed the Senate, not because of policy complexity, but rather because of compromise, which is treated as weakness within this legislative theater. Ultimately, this shutdown underscores the broader point of the US political system and becomes structured in rewarding brinksmanship; elected officials calculate that the short-term pain inflicted on the public will only create distrust within the government itself, while the government fights over who will bend over to the other party before the government shutdown is prolonged even more. God Bless America!
(Editors Note: Upon publication of this article, the U.S. government has officially entered into a shutdown)
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This article was edited by Vedha Gokul and Graciela Wray-Rivera.
Lauren Gracia 
Cooper Toland 
Anita Boniface