The United States government has entered a shutdown after the Senate failed to pass a short-term spending bill on Tuesday night, marking the first shutdown in seven years.
Hundreds of thousands of federal employees now face unpaid leave or will work without pay until funding is restored. The last shutdown, in 2018–2019, lasted 35 days, the longest in US history.
The fallout extends beyond American citizens. A pause in the release of economic data could disrupt global markets, while investors watch closely for shocks in US equities, which account for nearly 70% of global market capitalization.
The shutdown also threatens to stall trade talks and international agreements, including discussions over the recently expired African Growth and Opportunity Act (AGOA), a key US–Africa trade pact.
Visa processing and consular services may slow, while overseas travelers to the US could experience disruptions as airport and air traffic control staff are scaled back.