The U.S. government entered a partial shutdown on January 31, 2026, after Congress missed the midnight deadline to pass a $5.3 trillion budget for the fiscal year. While non-essential federal services halted, disruptions remain limited as lawmakers signal bipartisan support for a Senate-approved funding package expected to clear the House by February 3.
The shutdown, the first since 2023, reflects lingering disagreements over defense spending and healthcare allocations. However, both parties have downplayed risks of prolonged paralysis. "This is a temporary stumble, not a crisis," said Senate Majority Leader Charles Schumer, noting that 70% of federal agencies retained funding through prior short-term measures.
Asian markets reacted cautiously, with Japan's Nikkei dipping 0.8% amid concerns about delayed U.S. trade data. Analysts suggest minimal immediate impact on Asia-U.S. supply chains but warn prolonged deadlock could affect Q1 export forecasts. Overseas investors are monitoring the situation closely, particularly in semiconductor and renewable energy sectors reliant on U.S. partnerships.
For travelers, visa processing delays are expected at U.S. embassies in India and China, while flight operations and security screening continue uninterrupted. The White House confirmed President Harris will address the nation tonight to reassure global allies and citizens.
