History on the Length of Government Shutdowns
October 7, 2025
Few Washington rituals are as reliably disruptive as a government shutdown. As we are nearly one week into the current shutdown, it is worth revisiting the last few shutdowns to understand their causes, consequences, and the lessons they left for markets and policy watchers alike.
Many of these were very short—often lasting only a few days and barely noticeable to the general public. However, there have also been several longer shutdowns, which are listed below.
- 2018–2019 (35 Days): The Longest Shutdown
This record-breaking standoff, from December 22, 2018 to January 25, 2019, stemmed from a dispute over border wall funding. Roughly 800,000 federal workers went without pay, major economic data releases were delayed, and some mortgage processing was disrupted due to furloughed staff at key agencies. While Treasury and the Fed kept operations running, confidence wavered. GDP growth for Q1 2019 was shaved by an estimated 0.1–0.2 percentage points.
- 2013 (16 Days): The Affordable Care Act Fight
The October 2013 shutdown revolved around Republican attempts to defund the Affordable Care Act. Roughly 850,000 federal employees were furloughed, national parks and agencies shuttered, and credit markets briefly eyed the approaching debt ceiling. Equity markets dipped early in the standoff, then rallied as a deal materialized.
- 1995–1996 (21 Days Total): The Clinton–Gingrich Showdown
This two-part shutdown remains a classic. Clashes between President Clinton and Speaker Newt Gingrich over Medicare, education, and spending cuts closed the government for five days in November 1995 and then for 21 days from December into January. The political fallout ultimately boosted Clinton’s reelection narrative.
Why it matters: Beyond political theater, shutdowns have real economic implications—from delayed data releases to disruptions in housing finance pipelines. They often inject short-term volatility and policy uncertainty, even if longer-term fundamentals remain intact.
Contact James Montfort (jmontfort@crefc.org) with any questions.
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