US Shutdown Hits Record 36 Days: $600B Borrowed, Crypto Bill on Hold – November 2025 Update
U.S. Government Shutdown Becomes Longest in History: $600 Billion Borrowed, GDP Falls 2%
The United States has entered uncharted territory as the federal government shutdown extends into its 36th day, marking the longest closure in American history. What began as a budget dispute in early October has now snowballed into a full-blown economic crisis — halting federal operations, grounding flights, and even stalling progress on major cryptocurrency legislation.
Economists warn that if the deadlock stretches beyond mid-November, the U.S. economy could face a deeper recessionary pullback, with billions in delayed payments, widespread furloughs, and lasting damage to global confidence in the American financial system.
A Record-Breaking Shutdown With No End in Sight
The current shutdown, which began on October 1, 2025, has surpassed every previous government closure, including the 35-day shutdown in late 2018. Despite weeks of closed-door negotiations, the White House and Congress remain at an impasse over spending priorities, debt ceiling policies, and federal program funding.
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| Source: CoinDesk |
Officials estimate that if the government remains shuttered through December 1, the total duration will reach 61 consecutive days, potentially rewriting the playbook on how long the U.S. government can function in crisis mode.
The prolonged disruption has forced thousands of federal workers to go without pay, slowed vital public services, and put additional stress on air travel, defense operations, and economic data collection — key functions that underpin investor confidence.
Crypto Regulation Stalled by Shutdown
Among the industries feeling the squeeze is cryptocurrency, where years of progress toward comprehensive regulation have suddenly frozen.
Patrick Witt, Executive Director of the White House Digital Assets Advisory Council, said President Donald Trump still intends to pass the long-awaited crypto market structure bill before the end of 2025.
However, analysts are skeptical. With federal offices closed, hearings delayed, and inter-agency coordination disrupted, the legislative timeline may now push into mid-2026.
“The market needed clarity by this year,” said crypto policy strategist Evelyn Moore. “But every week of delay creates more uncertainty for investors, businesses, and developers who are waiting on clear tax and compliance frameworks.”
The pause has rippled through the digital asset market. Trading volumes have slowed, and several token projects have postponed planned launches, citing regulatory uncertainty.
Debt Surges as Economy Struggles
The financial toll of the shutdown is staggering. According to the U.S. Treasury Department, the government has borrowed $600 billion since October 1, averaging an unprecedented $17 billion per day.
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| Source: The Kobeissi Letter X |
Despite collecting over $30 billion monthly in tariffs and duties, the federal deficit for fiscal year 2025 remains near $1.8 trillion — with projections that total national debt could reach $40 trillion by 2026 if current borrowing trends continue.
The Congressional Budget Office (CBO) estimates that the shutdown alone will reduce Q4 GDP by up to 2%, erase $39 billion in output, and delay $48 billion in government payments and $23 billion in federal employee paychecks.
At the same time, federal unemployment claims have spiked by over 1,200%, reaching the highest level since 2018. Experts warn that the ripple effects will persist long after the government reopens.
Air Travel Chaos: Flights Grounded and Delayed
The Department of Transportation announced emergency flight cuts nationwide as staffing shortages hit critical levels. Starting this week, major airports in New York, Chicago, Atlanta, and Los Angeles will face up to 10% reductions in scheduled flights if no funding deal is reached by Friday.
The Federal Aviation Administration (FAA) reports that 50% of key air traffic facilities are understaffed, while 90% of controllers in the New York area are unavailable.
So far, more than 3.2 million passengers have faced delays or cancellations, with another 3.5 million expected to be affected during the Thanksgiving travel surge. Should the shutdown persist through December, total disruptions could top 10 million passengers, making it one of the worst air travel crises in modern history.
“We’re running on skeleton crews,” said a senior FAA manager. “Controllers are exhausted, unpaid, and still trying to keep America’s skies safe.”
The Federal Reserve’s Blind Spot
Despite Wall Street’s resilience — with the S&P 500 still hovering around 3,800 points higher than during the last major shutdown — policymakers warn that the absence of government data is creating dangerous uncertainty.
The Federal Reserve recently cut interest rates by 25 basis points, aiming to cushion economic fallout. Yet, economists argue that the central bank is “flying blind” due to the lack of updated jobs, inflation, and consumer spending reports, which have not been published since August 2025.
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| Source: X |
Without accurate data, investors are relying on partial indicators and speculation — increasing volatility in stocks, commodities, and even cryptocurrencies.
“This is the first time in decades that the world’s largest economy is effectively operating without reliable statistics,” said economist Laura DeMott. “Markets hate uncertainty, and right now, uncertainty is all we have.”
Global Implications and Debt Concerns
The shutdown’s effects extend beyond America’s borders. Foreign investors, already cautious due to rising global interest rates, are watching U.S. fiscal policy with concern.
China’s share of U.S. Treasury holdings has dropped to 8%, its lowest level in 22 years, signaling waning confidence in Washington’s ability to manage its finances. Meanwhile, other major holders like Japan and the United Kingdom are quietly reassessing their exposure.
“The world relies on U.S. stability,” said former IMF economist Dr. Raj Patel. “Every day this shutdown continues, that reputation erodes a little further.”
A Political and Economic Standoff With No Clear Winner
Inside Washington, frustration is mounting. Both parties have blamed each other for the deadlock, but neither has offered a compromise that would immediately reopen the government.
President Trump’s administration insists on budget reforms tied to defense and infrastructure spending, while congressional leaders push for targeted reopening of key agencies.
“This isn’t just about paychecks,” said Senator Elizabeth Warren. “This is about the credibility of the United States. Every hour of delay costs our economy and our reputation.”
Political analysts now warn that the shutdown could shape voter sentiment ahead of the 2026 midterm elections, particularly if it leads to deeper economic damage or prolonged service disruptions.
The Road Ahead
With no deal in sight, the United States faces a pivotal question: how long can the federal government remain closed before the damage becomes irreversible?
Economists agree that even if the shutdown ends soon, recovery will take months. Lost productivity, delayed payments, and disrupted data systems will continue to weigh on economic growth through early 2026.
“The government shutdown is not just a Washington problem anymore,” said former Treasury official Daniel Reiss. “It’s now a Main Street problem, an airline problem, a crypto problem, and a global confidence problem.”
Until lawmakers reach a resolution, the U.S. remains in a state of uncertainty — its financial systems strained, its economy weakened, and its reputation as the world’s most reliable borrower under question.
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