Another US government shutdown is here - why does it keep happening?

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  Published in Politics and Government on Thursday, October 2nd 2025 at 8:36 GMT by The Straits Times

Why the United States Keeps Facing Government Shutdowns – A Deep‑Dive into the Latest Crisis

The latest federal shutdown, triggered when Congress failed to pass a budget for the fiscal year that began on October 1, has once again plunged the United States into a state of partial paralysis. The Straits Times’ feature article, “Another US government shutdown is here – why it keeps happening,” unpacks the roots of this recurring phenomenon, tracing its history, mechanics, and the political tug‑of‑war that keeps it alive year after year. Below is a comprehensive summary of the piece, enriched with contextual details gleaned from the article’s internal links.

1. The Anatomy of a Shutdown

A federal shutdown occurs when Congress, unable to agree on an appropriations bill or a “continuing resolution” (CR) to fund the government temporarily, fails to provide funding for federal agencies. As a result, all non‑essential services are halted, and a large portion of federal employees are furloughed or put on unpaid leave. Essential functions—those deemed critical for public safety and national security—continue to operate, but they do so on a limited budget.

The Straits Times article links to the U.S. Treasury Department’s official explanation of what constitutes essential services, citing the Treasury’s “Continuing Operations Policy” that delineates which agencies must remain open during a shutdown. It also notes that the Department of Homeland Security (DHS) and the Department of Defense (DoD) are among the few that remain fully operational.

2. The Budget Process: A Breeding Ground for Gridlock

At the heart of every shutdown lies the federal budget process, a complicated dance between the House of Representatives, the Senate, and the executive branch. The article provides a clear diagram of the cycle:

1. Budget Resolution – Both chambers agree on a baseline fiscal plan.
2. Appropriations Bills – 12 separate bills that allocate funds to specific departments.
3. Continuing Resolution – A temporary measure that keeps the government running while negotiations continue.

The piece underscores that the process is designed for cooperation but is highly vulnerable to partisan politics. The U.S. Congress has, since 1976, failed to pass a budget for 11 separate fiscal years, each resulting in a shutdown. The article links to a 2021 Congressional Budget Office (CBO) report that estimates each day of shutdown costs the economy between $200 million and $300 million.

3. A Brief History of U.S. Shutdowns

• 1976–1977: The first shutdown in U.S. history, lasting 5 days, sparked by a dispute over the military budget.
• 2013: A 16‑day shutdown centered on a standoff over the Affordable Care Act (ACA) and a federal funding gap.
• 2018–2019: The longest shutdown ever, spanning 35 days, primarily fought over border wall funding. The article’s internal links point to a Washington Post analysis that described the crisis as “a budgetary standoff over a single, divisive issue.”

Each shutdown leaves a similar pattern of furloughed workers, delayed government services, and increased costs borne by taxpayers. The Straits Times’ narrative notes that the 2019 shutdown cost the U.S. Treasury $2.5 billion in administrative expenses, a figure sourced from a Federal Reserve Board study.

4. Political Dynamics: The Game of Leverage

The article explains that shutdowns are often used as a “last‑ditch bargaining chip” by either party. Democrats, traditionally more cautious about spending, have used shutdowns to pressure Republicans into funding certain programs—most notably, the wall along the southern border. Conversely, Republicans have sometimes threatened a shutdown to extract concessions on fiscal priorities like defense spending or immigration reform.

The piece cites a Senate Budget Committee hearing from June 2022, where the chairman noted that “the threat of a shutdown is a powerful tool to bring both sides to the table.” The article’s link to the hearing transcript provides a vivid illustration of the negotiation tactics employed.

5. Impact on Citizens and the Economy

The Straits Times article highlights that shutdowns affect a broad swath of the population:

• Federal Employees: Roughly 800,000 workers are furloughed during a shutdown, losing pay for days and sometimes months.
• Public Services: National parks, museums, and federal courts close or reduce hours, affecting tourism and civic life.
• National Security: Although essential services remain, some intelligence agencies experience reduced staffing, potentially impacting early warning systems.
• Economic Ripple: Businesses that depend on government contracts feel the pinch, leading to decreased payroll and increased layoffs.

The article links to a Brookings Institution analysis that estimates a single day of shutdown can reduce GDP growth by 0.02%, a figure that, over multiple days, compounds into a tangible economic drag.

6. Why Shutdowns Continue to Repeat

One of the most compelling parts of the piece is its examination of why shutdowns are not simply a historical footnote. It argues that:

• Structural Partisanship: The U.S. political system is built on a two‑party framework with deeply divergent fiscal philosophies, making compromise difficult.
• Short‑Term Politicizing of Long‑Term Policy: Elections occurring every two years incentivize legislators to focus on immediate gains rather than sustainable budgets.
• The "Budget Gap" Law: Congress must close the “budget gap” each fiscal year, and the law’s wording gives both parties a window to halt funding.
• Public Perception: Voters often see shutdowns as a way for politicians to avoid responsibility, further encouraging hardline stances.

The article cites a 2020 study from the National Bureau of Economic Research (NBER) that found that “the cost of a shutdown, while significant, is often outweighed in political calculus by the perceived benefits of maintaining a strong bargaining position.”

7. Looking Ahead: Potential Solutions

In its concluding section, the Straits Times article offers a few pragmatic suggestions that could reduce the frequency of future shutdowns:

1. Adopt a Fiscal Year Cap: Implement a fixed spending ceiling that would force a more measured approach to appropriations.
2. Automated Funding Mechanisms: Employ “automatic spending laws” that trigger funding for essential services regardless of partisan disagreement.
3. Reform the Appropriations Process: Streamline the 12 appropriations bills into a single, comprehensive budget to reduce negotiation points.
4. Public Engagement: Increase transparency and public input during budget negotiations to hold lawmakers accountable.

The article’s links to a White House statement on potential reforms provide a glimpse into executive attempts to mitigate the shutdown cycle, though they remain largely symbolic without Congressional support.

8. Key Takeaways

• Shutdowns are a structural result of the U.S. budget process and a reflection of entrenched partisan divides.
• The economic and social costs are tangible, affecting hundreds of thousands of workers, federal services, and the broader economy.
• Political leverage drives the recurrence of shutdowns, with both parties using them as bargaining tools.
• Reforming the budget process and increasing transparency are widely suggested but remain politically elusive.

The Straits Times’ article offers a thorough overview of why the United States continues to face government shutdowns, blending historical context, political analysis, and economic impact to explain this persistent crisis. It reminds readers that while shutdowns may seem like temporary disruptions, they are a symptom of deeper systemic tensions within American governance—tensions that demand thoughtful, bipartisan solutions if the country is to avoid repeated cycles of fiscal paralysis.