Kathmandu. The federal government of the United States, the world’s largest economy, has officially shut down. The government shutdown began on October 1, 2025, after the Congress failed to pass a budget for the new fiscal year. This situation has been created by serious disputes and stumbles between President Donald Trump’s Republican Party and congressional Democrats.
The main reason for this government shutdown is the disagreement over health care funding, foreign aid cuts and budget priorities. Democrats objected to the Mayricade benefit cuts and the healthcare credit after Republicans fell short of the 60 votes needed to pass the bill in the Senate.
Direct results of this closure:
Salary Cuts: Nearly 900,000 federal employees have been furloughed and more than 700,000 are working without pay.
Service Blocked: Essential services such as Medicare, Medicaid, and the TSA continue. However, many government agencies, including the CDC, NIH, and WIC (Program to Feed Poor Families), have shut down completely or partially.
Public services: National Parks, Capital Visitors Center visits and cleaning services have also been suspended.President Trump’s administration has frozen billions of dollars in federal funding targeting Democratic-ruled states.
This is the third government shutdown in Trump’s tenure and has shown the depth of the political deadlock.
Ripples in the global economy Every time there is such a contraction in the world’s largest economy, its impact is felt in financial markets around the world. This time too, the volatility in the market has increased and investors have a tendency to avoid risk.
Impact on Trade: Disruption of trade between the United States and the world can lead to supply chain problems in Asian countries, including major trading partners such as India and Nepal.
Investing: Shaking investor confidence can slow down global capital flows. This has an impact on emerging economies that depend on the stable consumption of the US market.
Multinationals: Companies with large turnovers in the U.S. are bracing for cuts to government contracts and regulatory delays that could affect the world’s economic growth trajectory.
This situation could pose short-term challenges to Nepal’s economy, which is heavily dependent on remittances and export trade with the US and India.If this government shutdown is extended
Impact on Remittances: Nepali migrant workers working in the United States may have reduced employment opportunities or their income may be affected, which may slow the flow of remittances to Nepal.In economic revival
Pressure: Increasing global uncertainty may also put pressure on Nepal’s carefully moving economic recovery.
This U.S. government shutdown of October 2025 is a significant political and economic event whose ripples have been felt around the world.TAG_CLOSE_strong_28 TAG_OPEN_strong_28 As efforts for internal solutions continue, governments and businesses around the world, including in Nepal, are preparing for increasing uncertainty.
