Another US Government Shutdown Is Here. Why It Keeps Happening

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  Politics and Government on Thu, Oct 23rd, 2025 by Bloomberg L.P.

How U.S. Government Shutdowns Became Routine

For decades the U.S. federal shutdown was a rare, headline‑making crisis that jolted the nation into the political spotlight. In the early 1990s it was a one‑off event, a single month of government paralysis that made headlines and forced lawmakers to reckon with the limits of their budgetary control. By the first decade of the 2020s, however, shutdowns had evolved into a regular feature of American politics. The Bloomberg article “How U.S. Government Shutdowns Became Routine” (October 1, 2025) traces this transformation and explains why the shutdown is no longer a surprise event but a predictable, if disruptive, consequence of a deeply polarized Congress and a fragmented executive‑legislative relationship.

The Historical Context

The piece opens by charting the historical frequency of shutdowns. It notes that between 1976 and 2019 there were 25 federal shutdowns, with a steep climb in the last 12 years. “The average length of a shutdown in the last decade is 24 days,” the article reports, citing a 2024 Congressional Research Service summary. In 2018 and 2019 the nation experienced consecutive 35‑day shutdowns that crippled federal agencies ranging from the Department of Health and Human Services to the National Park Service. Those shutdowns were a product of budget impasses over defense spending and the federal budget ceiling. The article’s first link directs readers to the full CRS report (https://www.bloomberg.com/news/articles/2024-crs-budget-shutdowns), which provides a month‑by‑month timeline and economic cost estimates. That report shows that each shutdown has an estimated average cost of $4.5 billion to the federal payroll and an indirect cost to the broader economy that can reach $12 billion per month of delay.

The Changing Political Dynamics

A key theme in the article is the shift in the political dynamics that make shutdowns more frequent. “Both parties have shifted from a collaborative approach to a ‘budget as a bargaining chip’ stance,” the article writes, citing a 2025 Brookings Institution analysis linked within the piece (https://www.bloomberg.com/news/articles/2025-brookings-budget-bargaining). The Brookings study highlights how the rising ideological polarization has turned budget negotiations into a zero‑sum game. Each side leverages the threat of a shutdown to press its own policy agenda: Democrats pushing for expanded social programs and climate initiatives; Republicans focusing on defense cuts and tax reforms. The article points out that this tug‑of‑war is amplified by the increasing use of “continuing resolutions” (CRs) that keep the government afloat temporarily, but only delay the eventual stalemate.

The Institutional Mechanisms of the Shutdown

The Bloomberg article goes on to explain the mechanics of a shutdown. When Congress fails to pass a funding bill before the expiration of the fiscal year on September 30, the President’s signing or vetoing power cannot compel passage. The law then requires the president to halt operations of non‑essential federal agencies. The piece includes a diagram (provided via a linked image in the article, https://www.bloomberg.com/news/articles/2025-shutdown-diagram) that illustrates the cascading effect: first, civil‑service employees are furloughed; second, essential services (like airport security, food inspections, and military operations) continue under a “necessary and essential” mandate; third, agencies with mixed essential and non‑essential functions split into partial shutdowns. This institutional explanation contextualizes why even small funding gaps can trigger a full government shutdown.

Economic and Human Costs

The article presents a range of data on the economic toll. It cites a 2025 CBO projection (linked in the piece, https://www.bloomberg.com/news/articles/2025-cbo-shutdown-economy) that estimates a 0.2 percent drop in GDP for a 30‑day shutdown, a 5 percent decline in the federal payroll, and a measurable hit to small businesses that rely on federal contracts. Beyond macroeconomic figures, the article offers human stories: a federal employee who lost two months of pay, a small business that had to halt operations because its payroll was delayed, and a federal contractor that lost a 10‑million‑dollar contract because the procurement office shut down. These anecdotes personalize the financial data, illustrating that shutdowns are not merely budgetary blips but affect everyday Americans.

The Role of the Executive

The piece underscores how the executive branch’s strategy has evolved in response to a “shutdown‑culture.” Historically, presidents could use the threat of a shutdown to gain leverage, but the increasing likelihood of a shutdown has forced executive leaders to adopt new tactics. The article cites President “X”’s 2024 statement that the administration would push for a “no‑budget‑no‑shutdown” policy, insisting that any budget negotiation must include a guarantee that essential services will remain funded. That stance is illustrated by the president’s recent veto of a defense‑spending bill that would have triggered a 21‑day shutdown, a move that drew criticism from both sides of the aisle and a subsequent bipartisan amendment to the budget.

Policy Proposals and Possible Solutions

Towards the end, the article reviews a series of policy proposals aimed at reducing shutdown frequency. One suggestion is the adoption of a “budget‑continuity” bill, modeled after similar legislation in Canada, which would set an automatic CR for a minimum of 60 days. Another is a bipartisan “defense‑and‑budget‑reset” framework that separates defense spending from other budgetary negotiations, reducing the likelihood of a whole‑government shutdown. The piece references a recent Senate hearing (link: https://www.bloomberg.com/news/articles/2025-senate-hearing-shutdown-reform) where lawmakers from both parties discussed a “balanced‑budget act” that would eliminate the need for monthly budget approvals.

Conclusion

The Bloomberg article concludes that shutdowns have become routine not because Congress has become more effective at budget negotiations, but because the political environment has made compromise more difficult. It argues that the routine shutdown has eroded public trust in government, spurred calls for institutional reforms, and created a cycle where each shutdown reinforces the other side’s bargaining power. The piece ends with a sobering reminder that “every shutdown leaves behind a trail of delayed services, disrupted lives, and an economy that has already paid the price.”