EXPLAINED: America is running out of food and money! Shutdown continues on 38th day, how is the most powerful country coming to a standstill, what is the impact on India?

Today is the 38th day of the government shutdown in America that started on October 1. This is the longest shutdown in American history. Earlier, during the first term of President Donald Trump, government work was at a standstill for 35 days. Due to the shutdown, food supply to 42 million Americans has been stopped and millions of employees have been sent on leave. From November 7, flights were reduced by 10% at 40 airports including New York, Los Angeles and Chicago. The situation in America is worsening day by day because Trump does not want to spend on health insurance.

So let us understand in ABP Explainer why there was a shutdown in America, how the issue of health insurance became the reason for the shutdown and what impact it will have on India…

Question 1- What is the shutdown in America and when has it happened?
answer- America’s fiscal year, i.e. the year of expenditure, starts from October 1. In a way, this is the economic year of the government, in which it plans to spend its money and make the budget. Congress has to pass 12 appropriation bills by September 30, which provide money to run the government for the entire year. During this time the government decides where to invest money, like in army, health or education.

If the new budget is not passed by this date, the President does not sign it. Due to this, government work (non-essential) stops. This is called shutdown. There is money in the American treasury, but there is no legal permission to spend it. This is the 22nd funding gap and 11th complete shutdown since 1977. According to Congressional Research Service America-

• December 2018- 35 days
• February 2018- 1 day
• January 2018- 3 days
• September 2013- 16 days
• December 1995- 21 days
• November 1995- 5 days

Question 2- Why was there the longest shutdown ever in America?
answer- There are 3 big reasons for the continued shutdown…

1. Congress could not pass funding bill: Congress had to pass 12 appropriation bills by September 30, which would have provided money for FY2026 (October 1, 2025 to September 30, 2026). But no bill was passed. The House passed a ‘clean’ continuing resolution (CR) that would have extended funding until November 21, but it failed in the Senate because Democrats blocked it.
2. Obama takes a stand on health care subsidies: Both the major parties of America, Democrats and Republicans, are at loggerheads over the Obama Health Care Subsidy Program. Democrats want to increase health care (health insurance) subsidies, which expire on December 31, 2025. It started in 2021 under Covid Relief and was extended till 2025 in the Inflation Reduction Act of 2022. Without it, health insurance premiums for 24 million Americans would increase by an average of 114%. This average is $888 annually in 2025, which will increase to $1904 annually in 2026. Democrats say they will pass a CR only if the subsidies are extended for 2 years and the Medicaid cuts made in the One Big Beautiful Bill Act of July 2025 are reversed. He blocked Republican CR 14 times in the Senate.
3. Republicans’ stand: They say pass clean CR, health care will be discussed later. Trump said, ‘Democrats are holding Americans hostage, end the filibuster.’ Republicans have 53 seats in the Senate, but need 60 votes, so Democrats are needed.

Apart from this, the shutdown has been described as an ‘unprecedented opportunity’ to cut agencies. Attempts have been made to fire thousands of federal workers. In the mayoral elections held on November 5, 2025, Republicans lost in New Jersey and Virginia, which Trump blamed on the shutdown. In polls, 78% of Americans (including 59% of Republicans) want subsidy extension.

Question 3- What is the impact of the shutdown in America?
answer- According to the October 29 report of the Congressional Budget Office (CBO), a loss of $ 11 billion (about Rs 1 lakh crore) has been incurred so far. If the shutdown does not end soon, real GDP growth will decline by 1-2% points in the fourth quarter of the financial year 2025-26. Most will be recovered, but the permanent loss will range from $7 billion to $14 billion.

• Impact on Food Stamps (SNAP): This is a government assistance program that helps low-income families and individuals in the United States purchase nutritious food. So that the lower middle class families get good food and do not face starvation. People who are eligible for these stamps receive an electronic card that they use to purchase food at grocery stores. Due to the shutdown, about 4.2 crore population will be deprived of food stamps. In November, people received only 65% ​​of the benefits, because USDA had only $6 billion, whereas $8 billion was needed.
• Impact on flights and air travel: From 7th November i.e. today, 10% flight reduction started at 40 major airports because air traffic controllers got tired of working without salary. After the shutdown, there has been a 4% cut, then 6%, 8% and now 10%. United Airlines has canceled many flights.
• Bad effect on employees: About 7.5 lakh government employees are on leave without salary. Essential employees like army, police, border security and air traffic controllers have to work without salary. According to CBO, the employees sent on forced leave are losing about $400 million (Rs 3,300 crore) in salary per day. CBO Director Philip Swagel said the shutdown is delaying government spending and has a negative impact on the economy.
• Impact on Atomic Weapons Agency: The National Nuclear Security Agency has sent 1,400 employees on leave. Energy Secretary Chris Wright said two weeks ago that this had never happened before and could affect the security of nuclear weapons.

Question 4- Then when can the shutdown in America end?
answer- Currently, there is a condition of filibuster in the US Parliament, through which MPs can deliberately prolong the debate on a bill, so that voting on it gets delayed or cannot be done at all. In the US Senate, there is a process called ‘Clotter’ to end the debate and voting on any proposal. For this, support of at least 60 out of 100 senators is required. For this reason Trump’s funding bill is stuck. The opposition uses this rule only to stop the law from being passed, no matter how important the issue is. The purpose of the filibuster is to ensure that the minority party also gets the right to express its views in law making. No party should exercise dictatorship merely on the basis of its numbers.

Foreign affairs expert and retired JNU professor A. Of. Pasha says, ‘The shutdown in America can last a very long time because the Republicans and Democrats are face to face. The internal condition of America has become very bad. Due to Trump’s policies, participation in wars and fanaticism, America’s treasury is on the verge of becoming empty. The shutdown is just a curtain behind which Trump is hiding his shortcomings and losses. They are not able to tell the American people that this America is no longer a superpower like before. They are entangling people in enmity with China and Russia and the poor and middle class people there are facing problems.

Question 5- Is India also being affected by the American shutdown?
answer- A. Of. Pasha says, ‘Trump has put pressure on India to import food products, which he is continuously increasing. Trump wants American dairy products, grains, crops and meat to be sold in India. The Indian government should buy from America instead of its own farmers, so that America starts earning. As America is losing money due to the shutdown, India is also being affected. Trump is upset that people inside the country are not following his rules and other countries have also started ignoring him.