🔗 Share this article

Government closures have become a recurring feature of US politics – however this one feels particularly intractable due to shifting political forces along with bad blood among both major parties.

Certain federal operations are temporarily suspended, with approximately 750,000 employees are expected to be put on furlough without pay since Republicans and Democrats can't agree regarding budget legislation.

Legislative attempts to resolve the deadlock continue to fall short, with little visibility on a clear resolution path this time as each side – including the President – can see some merit in digging in.

These are the four ways that make things feel different in 2025.

1. For Democrats, it's about Trump – not just healthcare

The Democratic base has been demanding for months for their representatives adopt stronger opposition against the Trump administration. Currently the party leadership has a chance to demonstrate their responsiveness.

Earlier this year, Senate leader faced strong criticism for helping pass a Republican spending bill and averting a government closure early this year. Now he's holding firm.

This presents an opportunity for Democrats to demonstrate their ability to reclaim some control from a presidency pursuing its agenda assertively on its agenda.

Opposing the Republican spending plan carries electoral dangers that the wider public may become impatient as the dispute drags on and impacts accumulate.

The Democrats are leveraging the shutdown fight to highlight concerns about expiring health insurance subsidies and GOP-backed federal health program reductions for the poor, which are both unpopular.

Additionally, they're attempting to restrict executive utilization of his executive powers to cancel or delay funding approved by Congress, a practice demonstrated in international assistance and various federal programs.

2. For Republicans, it's an opportunity

The administration leader along with a senior aide have openly indicated their perspective that they smell a chance to make more of the cutbacks in government employment that have featured the current presidential term so far.

The President himself stated recently that the shutdown provided him with a "unique chance", and that he would look to reduce funding for "Democrat agencies".

Administration officials stated they would face the "unenviable task" involving significant workforce reductions to keep essential government services operating if the shutdown continued. An administration spokesperson said this was just "fiscal sanity".

The scope of the potential lay-offs remains unclear, but the White House has been in discussions with federal budget authorities, or OMB, which is headed by the key official.

The budget director has previously declared the halting of government financial support for regions governed by the opposition party, including New York City and Chicago.

Third, Trust Is Lacking on either side

While previous shutdowns have been characterised by extended negotiations between the two parties in an effort to get government services running again, currently there seems little of the same spirit of collaboration this time.

Instead, there is rancour. Political tensions persisted recently, with Republicans and Democrats exchanging accusations regarding the deadlock's origin.

The legislative leader a Republican, charged opposition members of not being serious toward resolution, and holding out over a deal "to get political cover".

Meanwhile, the Senate leader made similar charges at the other side, saying that a majority party commitment regarding health funding talks once the government reopens can not be taken seriously.

The administration leader personally has escalated tensions through sharing a computer-created controversial depiction of the Senate leader and the top Democrat in the House, where the representative is depicted with traditional headwear and a moustache.

The representative with party colleagues called this racist, a characterization rejected by the Vice-President.

4. The US economy is fragile

Experts project about 40% of government employees – over 800,000 workers – to face furlough as a result of the shutdown.

This will reduce consumer expenditure – with broader economic consequences, including halted environmental approvals, patent approvals, payments to contractors along with various forms of federal operations connected to commercial interests cease functioning.

The closure additionally introduces fresh instability into an economy already being roiled by changes ranging from trade measures, earlier cuts to government spending, enforcement actions and technological advancements.

Analysts estimate that it could shave as much as 0.2 percentage points off US economic growth weekly during the closure.

But the economy typically recoups most of that lost activity after a shutdown ends, as it would after disruption after major environmental events.

That could be one reason why financial markets have shown limited reaction by the current stand-off.

Conversely, analysts say that if administration officials implement his threat of mass firings, the damage could be extended in duration.