Congress is once again facing a deadline that could trigger a partial shutdown of the U.S. government, as negotiations over federal funding stall and lawmakers struggle to bridge deep political divisions. With existing stopgap funding set to expire soon, the risk of disruptions to government services is rising, reviving concerns across Washington, financial markets, and the federal workforce.

While shutdown threats have become familiar in recent years, economists and policy analysts warn that this one could have a sharper impact. The U.S. economy is already navigating slower growth, high interest rates, and lingering uncertainty in global markets, leaving less room to absorb the shock of furloughed workers, delayed payments, and interrupted public services. Even a short shutdown could weigh on consumer confidence and complicate economic planning for businesses that rely on federal approvals or contracts.

If funding lapses, hundreds of thousands of federal employees could be furloughed, while many others would be required to work without immediate pay. National parks and some federal offices could close, regulatory agencies could pause routine work, and the release of key economic data could be delayed. Past shutdowns have also disrupted air travel, slowed food and drug inspections, and created backlogs in immigration and benefits processing.

Negotiations remain tense on Capitol Hill. Lawmakers from both parties say they want to avoid a shutdown, but disagreements persist over spending levels and policy provisions attached to funding bills. Some lawmakers are pushing for deeper cuts or stricter conditions on federal programs, while others argue that such demands risk unnecessary economic harm and undermine basic government functions. Leadership in both chambers has struggled to unify their caucuses behind a compromise that can pass before the deadline.

The economic costs of a shutdown can escalate quickly. Previous funding lapses have shaved billions of dollars off economic output, with effects that linger even after the government reopens. Federal workers often delay spending when paychecks are uncertain, contractors may halt projects, and local economies that depend on government activity can feel an immediate slowdown.

For now, lawmakers are continuing talks and floating short-term funding extensions as a way to buy more time. Such measures can prevent an immediate shutdown but do little to resolve the underlying disputes that have repeatedly brought the government to the brink. As the deadline approaches, businesses, federal employees, and the public are left watching Washington closely, hoping that an agreement is reached before services are interrupted once again.

Sources: Reuters, CBS News, Yahoo Finance, The Wall Street Journal, Time