Trump’s Standoff Sparks Longest Government Shutdown in US History; Economic Loss Crosses Rs 1 Lakh Crore

Digital Desk

The United States has entered the 36th day of its longest-ever government shutdown, triggered by President Donald Trump’s refusal to increase healthcare subsidies, leaving the country’s economy and public services in crisis.

The deadlock began on October 1 after the US Senate failed 13 times to pass the annual funding bill, falling short of the 60 votes required. Trump’s insistence on limiting healthcare spending has stalled negotiations, creating a political impasse between Republicans and Democrats.

According to the Congressional Budget Office (CBO), the shutdown has caused an estimated economic loss of $11 billion — roughly Rs 1 lakh crore — and could shave 1% to 2% off GDP growth if it continues. Around 1.4 million federal employees have been affected, with 6.7 lakh placed on unpaid leave and another 7.3 lakh working without pay.

CBO Director Phillip Swagel warned that the delay in government expenditure is hurting the economy and will only be partially recovered later. Federal employees are losing approximatelyRs3,300 crore in wages every day.

The impact is rippling across critical sectors. Air traffic has been severely disrupted, with over 16,700 flight delays and more than 2,200 cancellations reported nationwide. The Federal Aviation Administration (FAA) says 11,000 air traffic controllers have gone unpaid, causing staffing shortages at major airports.

The shutdown has also halted food stamp assistance for 42 million Americans. The Department of Agriculture’s reserve funds are running out, prompting 25 states to file a lawsuit against the administration, calling the suspension of food programs “illegal and inhumane.”

With the stalemate deepening and neither party showing signs of compromise, economists warn the prolonged shutdown could inflict lasting damage on US economic stability and public confidence in governance.