US government shutdown: Why it happened, what’s running, what’s not and when will it end
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US shutdown 2025
The US federal government shut down at 12:01 a.m. ET on Oct 1 after Congress missed funding deadlines, pausing many “nonessential” services while essential operations continue until a stopgap or full‑year deal passes. Know what’s still running, what has stopped and why it happened.
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Why it happened
Talks broke down over how to fund the year ahead, including disputes tied to health policy and spending priorities; without a compromise before the deadline, agencies began executing contingency plans and furloughs.
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What keeps running
Essential functions persist: air traffic control, border security, law enforcement, inpatient/emergency care, Social Security and Medicare payments,unemployment benefits and disaster response, though wait times and some support services may slow.
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What slows or stops
National parks and museums may close or scale back, new federal loans and permits can pause, routine data releases can be delayed, and many federal workers are furloughed or working without immediate pay until funding passes.
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Everyday money impacts
Federal paychecks can be delayed, contractors face stoppages, some mortgages can be harder to close due to paused verifications or flood insurance issuance, and economic output typically dips the longer a shutdown lasts.
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How it ends and when
A shutdown ends only when Congress passes funding—either a short‑term continuing resolution or the full‑year appropriations—and the President signs it; timing depends on negotiations, with past shutdowns ranging from days to over a month.
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How it can affect India
Consular and travel functions generally continue but may slow in pockets, creating potential delays for visas, travel plans, and federal‑linked processes that touch Indian travelers and firms.
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How US markets operate
US stock markets remain open during shutdowns, but sentiment can turn choppy as key federal data releases pause and Washington uncertainty weighs on risk assets and the dollar.Past episodes show flight‑to‑safety patterns, with gold firming and equities wobbling, while traders price outcomes day‑to‑day until a funding deal or stopgap measure emerges.