Many in Singapore—and around the world—are mystified by the ongoing American government shutdown, which has now reached a record 36 days and profoundly disrupted daily life and essential services in the United States.​

Why Is the Government Shut Down?

The shutdown began when the Republican-controlled Senate failed to secure the 60 votes required to pass a government budget. This year, however, Republicans have refused to negotiate, steadfastly holding out for their own proposals and denying the usual bipartisan dealmaking. This hardline stance means the budget cannot pass, so government operations have ground to a halt.​

The Impact On Americans

The consequences have been severe. About 1.4 million federal employees are either furloughed or working without pay. Programs like SNAP, which provide nutrition to children in need, are in jeopardy. Air traffic controllers and airport personnel have continued to work without pay, raising fears about travel safety and system reliability. In an extraordinary move, House Republicans were granted a six-week paid vacation, leaving Washington, D.C. during the crisis.​

Healthcare at Risk

Accepting the Republicans’ budget would mean dramatic cuts to healthcare. Over 20 million Americans would see their ACA premiums double, and in some states premiums would soar even higher. Worse, 15 million people could lose their coverage if Medicaid cuts are enacted, a move that studies estimate could result in roughly tens of thousands of unnecessary deaths a year among low- and middle-income families. Rural hospitals, nursing homes, and community health centers face severe funding reductions, threatening closures and diminished care in areas that often have few alternatives.​

Trump has indicated he may not listen to the judges if he does not agree with their ruling.

Tax Breaks for the Wealthy

The Republican budget aims to eliminate healthcare funding to finance a trillion-dollar tax cut for the wealthiest Americans—including billionaires like Elon Musk and Jeff Bezos. Critics argue this choice values tax breaks for the richest over basic health and security for millions.​

Recent elections saw Democrats perform strongly in places like New Jersey, Virginia, and New York City, with many voters expressing deep frustration about Republican policies. Public opinion polls confirm Americans largely blame Republicans for the shutdown and oppose efforts to slash healthcare in order to reward the ultra-rich.​

The current standoff is more than a budget dispute—it’s a battle over the future of American governance, with working families and democratic norms hanging in the balance.​

The American shutdown has laid bare the urgent choices facing U.S. democracy: whether lawmakers will defend the interests of millions or protect the privileges of a few. For people everywhere, it’s a reminder that the political choices made in Washington can have profound, global consequences.​

The Simple Truth They Would Not Admit

Another critical factor analysts highlight for the recent deep budget cuts is the impact of tariffs imposed under former President Trump. While these tariffs did raise historic revenues—their broader economic effects were negative for many American companies.​

Retaliatory tariffs from trading partners and a decline in public perception led to decreased export demand and shifted costs onto businesses and consumers.

This pressure contributed to the urgency around budget cuts: public revenues from tariffs could not fully offset the economic slowdown, prompting lawmakers to seek savings elsewhere—often by slashing public programs, including healthcare and social support, with especially harsh consequences for lower-income Americans. The result is a budget plan that not only responds to new fiscal challenges, but also deepens hardship for vulnerable communities and raises questions about the longer-term economic direction of U.S. policy.