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US Government Officially Enters Shutdown...Hundreds of Thousands on Unpaid Leave, Public Services Hit

First Shutdown in Seven Years Since 2018
35-Day Work Stoppage Caused 4.2 Trillion Won in Damages

US Government Officially Enters Shutdown...Hundreds of Thousands on Unpaid Leave, Public Services Hit Reuters Yonhap News

As the Republican and Democratic parties in the United States failed to reach an agreement on the budget, the U.S. federal government officially entered a shutdown-an emergency suspension of government work-at midnight on October 1 (local time).


The shutdown began at 12:01 a.m. on October 1 (1:01 p.m. KST on October 1). The shutdown is mandated by the "Antideficiency Act," which governs congressional control over fiscal spending. This marks the first such event since the launch of the second Donald Trump administration on January 20.


As a result of this measure, hundreds of thousands of federal employees are expected to be furloughed without pay, and many government programs and services will be suspended. A significant number of employees, except for those deemed essential for national security, public safety, and constitutional functions, will be placed on unpaid leave. Public services are also inevitably expected to be affected.

US Government Officially Enters Shutdown...Hundreds of Thousands on Unpaid Leave, Public Services Hit

In an effort to avert the shutdown, the Senate put the Republican party's seven-week continuing resolution (CR) to a vote on September 30, requiring 60 votes to pass, but it was rejected with 55 in favor and 45 against. The Democratic party's own temporary funding bill was also voted down.


The last U.S. government shutdown occurred during the first term of the Trump administration in December 2018 (based on the start date). At that time, the government work stoppage lasted 35 days, marking the longest in history. According to the Congressional Budget Office (CBO), the economic damage from that shutdown amounted to 3 billion dollars (approximately 4.2 trillion won).


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