Background

What is a US government shutdown? click here

Context

• The United States has had many government shutdowns over the years when leaders can't agree on spending money. The longest one happened from December 22, 2018, to January 25, 2019. It lasted 35 days and affected millions of people. This shutdown was during President Donald Trump's time and was about funding for a border wall.
• Today, there's an ongoing shutdown that started on October 1, 2025, and it's already the second-longest at over 23 days. But let's focus on the record-holder from 2018-2019. 

Why It Happened?

• In the US, the government needs Congress to approve money each year to run things like parks, offices, and worker pay. If they don't agree, non-important parts shut down. In 2018, President Trump wanted $5.7 billion to build a wall on the border with Mexico to stop illegal immigration. Democrats in Congress said no, calling it a waste. Republicans controlled Congress at first, but talks failed.
• Trump said he was "proud" to shut down the government for border security. When a new Congress started in January 2019 with Democrats in charge of the House, things got worse. No one would budge, so the shutdown dragged on for 35 days – longer than any before, beating the 21-day one from 1995-1996.

How It Ended

After weeks of no pay for workers and growing problems, Trump agreed to a short deal on January 25, 2019. Congress passed a bill to open the government for three weeks without wall money. Workers got back pay later. Then, in February, they agreed on $1.375 billion for border fences, not a full wall. Trump signed it but used emergency powers to get more money for the wall. It showed how hard it is to fix these fights.

Impact on the U.S.

• The shutdown hurt the US a lot. About 800,000 government workers didn't get paid. Some had to work for free, like airport security and border guards. Others were sent home without jobs. People lined up at food banks, couldn't pay bills, and some lost homes. National parks closed or got trashed without staff. Flights had delays because air controllers called in sick. Food checks stopped, and schools worried about lunches for kids.
• The economy lost at least $11 billion, with $3 billion gone forever. It cut GDP growth by about 0.1% per week. Businesses near government offices lost money, and tax refunds were late. Experts said it could lead to a recession if it went longer. Even after it ended, fixing the damage took time.

Impact on India

• The shutdown was mostly a US problem, but it had ripples around the world, including India. India and the US trade a lot – things like software, drugs, and gems. When the US economy slows, it buys less from India, hurting exports. The IT sector in India, which sends services to US companies, felt worried. If US businesses cut spending, Indian firms like Infosys or TCS could lose deals.
• On visas, many Indians go to the US on H-1B for tech jobs. During the shutdown, some visa steps slowed because offices like the Labor Department closed. New applications for work papers stopped, delaying H-1B and green cards for Indians.
• Tourist and student visas kept going because they're paid by fees, but waits got longer at embassies.
• The rupee in India felt pressure from shaky US markets. Investors got scared, pulling money out of India, making stocks fall and the economy wobble.
• One report said prolonged US chaos could "weaken investor sentiment, pressure the rupee, influence capital flows and trade, and indirectly affect India's growth outlook." India's government watched closely because US problems can spread globally.
• Other global effects included delayed US help in disasters, like a tsunami in Indonesia, and weaker weather forecasts. For India, it was more about money flow than direct aid.

Key Lessons

This 35-day mess showed how politics can hurt everyday people and the economy. It costs jobs, money, and trust. For India, it was a reminder that what happens in the US affects the world. Today, with the 2025 shutdown going on, similar worries are back – visa delays, trade hits, and economic shakes. Experts say quick deals are key to avoid big damage.