US is at risk of having the longest shutdown in history

by Andrea
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Statement was made by Republican Mike Johnson, president of the House of Representatives, on Monday (13.Oct)

The president of , (Republican Party), declared on Monday (13.Oct.2025) that the federal government shutdown could become the longest in history. According to , alone in the Capitol on the 13th day of the shutdownthe Republican said that “will not negotiate” with Democrats until they drop their demands for health care.

O shutdownas the federal shutdown is known, . As a result, around 1.4 million workers were placed on unpaid leave. The Trump government will take advantage of the layoffs to lay off some workers and streamline the public sector.

“We are heading towards one of the longest shutdowns in American history”Johnson said. The president of the House of Representatives, however, stated that he was unaware of the details of the dismissal of thousands of federal employees by the US government. The vice president (Republican Party) warned of possible cuts “painful”even if the unions file a lawsuit.

Johnson also thanked the US president, (Republican Party), for guaranteeing the . The Coast Guard is also receiving payment, a senior government official confirmed to the agency on Monday (13.Oct).

According to Associated PressAt its core, the shutdown is a debate over health policy — particularly the Affordable Care Act subsidies, also known as Obamacare, which are expiring for millions of Americans who rely on government assistance to get their own health insurance. Democrats demand that the subsidies be extended, but Republicans argue the issue can be addressed later.

UNDERSTAND THE IMPASSE

The House approved an extension of spending until November, but in the Senate the Republican majority needs votes from at least 7 Democrats to approve the law. The problem is that the sides disagree on how to structure the budget.

Republicans defend deeper cuts in social programs and reduced federal spending, claiming that the government deficit is on an unsustainable trajectory. Democrats, on the other hand, defend the maintenance of investments in health, education and infrastructure, stating that the proposed cuts would harm millions of American families. Without consensus, none of the proposals move forward.

The effects of shutdown will be felt quickly in the US. In financial markets, it tends to increase the volatility of shares, interest rates and exchange rates, in addition to causing a search for safe haven assets, such as Treasuries and gold, and impacting sectors dependent on government contracts or approvals.

The impact is often limited if the shutdown is short, but the threat of mass layoffs increases the potential severity.

LONGEST TRUMP SHUTDOWN 1

O shutdown The longest period in US history took place from December 2018 to January 2019, during Donald Trump’s first administration. According to the CBO (Congressional Budget Office), the 2019 episode reduced North American GDP by around 0.1 percentage point in the affected quarter.

Since 1976, when the US moved the start of the fiscal year to October 1, the government has experienced 21 partial shutdowns. Among these, the following stand out:

  • 1995 (21 dias) – during the Bill Clinton administration (Democratic Party), disagreements over budget cuts between the Chief Executive and the then President of the House, Newt Gingrich, led to a strike;
  • 2013 (16 dias) – Republican-led Congress attempted to use funding approval as a bargaining chip to amend the Affordable Care Act. The Barack Obama government (Democratic Party) did not accept cuts to the program and public services were suspended.

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