On October 1, 2025, the U.S. Government entered a federal government shutdown after Congress failed to approve a spending plan for the new fiscal year. The shutdown began just after midnight, affecting hundreds of thousands of federal employees, disrupting services, and sparking concern across the nation about how long it might last.
At the heart of the crisis lies a deep political divide in Washington. Lawmakers could not agree on funding levels or key policy provisions tied to health care and social spending, leaving the government without the money it needs to operate fully.
Key Reasons
- Partisan Gridlock: Republicans pushed for a “clean” funding bill, while Democrats demanded restoration of Affordable Care Act subsidies and protection for Medicaid.
- Budget Rescissions: The Trump administration wanted authority to cancel previously approved funds, adding tension.
- No Compromise: Competing bills failed in the Senate, and funding expired at midnight.
Impact
- Federal Workers: Hundreds of thousands furloughed or working without pay.
- Agencies Affected: FAA furloughed 11,000 staff; CDC and NIH cut most research staff.
- Economy: Estimated $400 million lost per day in wages and productivity.
- Services Continuing: Social Security, Medicare, military, law enforcement, and air traffic control remain operational.
What’s Next?
Congress must pass a new spending bill or stopgap resolution to reopen the government. Historically, furloughed workers receive back pay once a shutdown ends, but the timeline for resolution remains uncertain.