US in turmoil as budget fails to pass

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Sagar Sitaula
Sagar Sitaula is a financial writer and market analyst specializing in both Nepal’s stock market and global financial trends. His work bridges NEPSE insights with international...
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The United States is facing major disruption after failing to pass its new budget. The government shutdown has now entered its 37th day the longest in American history. The last record was a 35-day shutdown during Donald Trump’s first term in 2018.

Millions affected by halted services

Due to the shutdown, about 42 million Americans have stopped receiving food stamp support. The U.S. Department of Agriculture only has $5 billion left in reserves, while nearly $9.2 billion is needed to keep the program running through November.

Around 670,000 government employees have been sent home without pay, while another 730,000 are working without salaries. This means nearly 1.4 million people are surviving on debt and savings as the deadlock continues.

Political dispute blocks budget

The main reason behind the crisis is political disagreement over health funding. Democrats want to increase health service grants, while Republicans oppose it, saying it will raise government spending. The budget bill has already faced 14 votes in the Senate but failed each time to secure the 60 votes required for approval.

States take legal action

After the federal government suspended the food supply program, 25 states including New York, California, and Massachusetts filed lawsuits against the Trump administration. They claim cutting food aid for millions is illegal and harms vulnerable citizens.

Economic damage mounts

The Congressional Budget Office has reported that the shutdown has already caused an $11 billion loss to the U.S. economy. If it continues, the country’s GDP could fall by 1–2% in the fourth quarter. Government workers are losing nearly $400 million in wages every day, while delays in federal spending are slowing down economic activity nationwide.

Air travel in crisis

Airports across the country are also feeling the impact. Over 11,000 air traffic controllers have not received their salaries since October 1. Between October 31 and November 2, more than 16,700 flights were delayed and 2,282 flights were canceled.
Half of the country’s 30 major airports are now short-staffed, and some New York-area airports are operating at only 80% capacity. The Federal Aviation Administration has warned that continued non-payment could lead to severe safety risks due to fatigue and stress among air controllers.

The shutdown reflects the deep divide between Democrats and Republicans. Democrats are demanding more support for public health programs, while Republicans are pushing back, arguing that expanding funding would strain other government budgets. The Senate’s filibuster rule allows extended debates and delays, meaning even critical bills can be blocked unless 60 senators agree to end the discussion a threshold the current budget bill has failed to meet repeatedly.

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Sagar Sitaula is a financial writer and market analyst specializing in both Nepal’s stock market and global financial trends. His work bridges NEPSE insights with international market movements, offering readers a clear view of how global dynamics shape local investments. Through research-driven analysis, he aims to make finance accessible and relevant to all investors.
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