US Government Shuts Down Over Funding Deadlock
The U.S. federal government entered a partial shutdown at 12:01 a.m. EDT on October 1, 2025, after Congress failed to pass legislation to keep operations funded. The impasse stemmed from disagreements over health subsidies, Medicaid cuts, and overall federal spending.
How Shutdown Happened
Both rival proposals—from Republicans and Democrats—were rejected in the Senate on September 30. The Republican plan would have extended funding for seven weeks, while the Democratic proposal included expansions of health insurance subsidies and reversals of recent cuts. Neither could muster the 60 votes needed under Senate procedure.
Which Services Are Affected
Many federal services are paused or reduced. Agencies without independent funding or mandatory status must furlough staff. However, critical services such as military operations, Social Security, Medicare, and air traffic control continue. The Department of Transportation plans to furlough over 11,000 FAA workers.
Worker Impact and Possible Layoffs
Up to 750,000 federal employees may be furloughed without pay during the shutdown. In a shift from past practice, federal agencies were instructed to prepare reduction-in-force (RIF) plans, raising the possibility of permanent job cuts in less essential programs.
Political Fallout
President Trump and congressional Republicans blame Democrats for the standoff, citing refusal to drop policy demands. Democrats counter that Republicans refuse to negotiate on health care relief. With no clear compromise in sight, the shutdown may stretch longer than initial projections.
