U.S. government shuts down after a failure by President Trump and Congress to reach a deal 

On October 1, 2025, the U.S. federal government entered a shutdown because President Donald Trump and Congress could not agree on how to fund government operations after the deadline. A government shutdown happens when Congress does not pass—or the President does not sign—a law (or a temporary bill) that gives money to federal agencies. Without that funding, many parts of the government must stop working, or work with limited operations.  

Why Did the Shutdown Happen?

The Budget and Appropriations Process Every year, Congress must pass appropriations bills—laws that provide money for government departments and programs. If Congress is unable to pass these before the start of the new fiscal year (October 1), or extend them via a continuing resolution (a stopgap measure), a shutdown becomes possible. In this case, Senate Democrats rejected a Republican-backed temporary funding bill. That bill would have extended funding until November 21, but the Democrats insisted that any package must restore health care subsidies under the Affordable Care Act and reverse cuts to Medicaid. Because no agreement passed, funding expired at midnight, triggering the shutdown. Disagreements Over Policy The standoff centered largely around health care funding and Medicaid. Democrats argued those programs were critical for millions of Americans and must be protected. Republicans, supporting President Trump, resisted adding those provisions into the funding bill now. Also, the Trump administration warned that, if a shutdown occurs, it might use the period to make “irreversible” cuts to programs favored by Democrats.  

What Happens During a Shutdown? When the government shuts down, many services are paused or slowed, but not everything stops. Some functions are considered essential and continue regardless. Here is how the shutdown is affecting things: Furloughs and Layoffs Around 750,000 federal workers are expected to be furloughed—sent home without pay. The Trump administration has threatened mass layoffs (permanent terminations) beyond just furloughs. Essential workers (for example, military and air traffic controllers) may have to work without immediate pay. 

Services That Continue vs. Services That Stop Likely to Continue: Social Security, Medicare, and other benefit programs that have independent funding or mandatory status. National defense, law enforcement, border security, and some public safety functions. Some agencies that are funded outside the normal budget process (e.g. U.S. postal service). 

Likely to Stop or Be Disrupted: Many federal offices will close or operate minimally. Passport, visa, and some immigration services may slow down or halt, depending on funding. National parks, museums, and other federally run public sites might close or have limited access. Regulatory work, research, education grants, and environmental programs are vulnerable to suspension. Courts and other judicial functions funded by federal appropriations may pause non-urgent work (though criminal matters continue). 

Economic Costs and Daily Impacts 

The shutdown is estimated to cost about $400 million per day in lost economic output. Many workers, especially those living pay to pay, will face hardship without their regular income. Local economies near federal operations (e.g. base towns, cities with many federal contractors) may feel the ripple effects. Delays in federal contracts, grants, and payments to states and local governments become likely.   Political Fallout and Blame In moments like this, political parties exchange blame and try to use public opinion as leverage. The Trump administration immediately froze $26 billion in federal funds to Democratic states (for transit, green-energy, etc.) as part of a pressure tactic. The White House also placed political banners on federal agency websites blaming “Radical Left Democrats” for the shutdown. Democrats responded by accusing Republicans of refusing to negotiate in good faith and risking essential services for political gain. Some Republicans say Democrats must drop their demand for changes in health care in order to pass a clean spending bill. As the days pass, both sides will try to shift public support, and media attention may shape which party is blamed by voters.   Historical Context & Comparisons Government shutdowns are not new. Here are a few past examples: The 2018-2019 shutdown (during Trump’s first term) lasted 35 days, making it the longest in U.S. history. In 2013, there was a 16-day shutdown under President Obama over funding disputes. In the mid-1990s, under President Bill Clinton, the government shut down twice (in 1995–1996) over budget disagreements. 

From past events, we know that shutdowns can drag on, and the longer they last, the more damage they cause — to federal employees, public services, and the economy. Also, after shutdowns end, Congress often grants retroactive pay to furloughed workers, as was done by laws like the Government Employee Fair Treatment Act in past shutdowns.  

What’s Next? How Could the Shutdown End? The shutdown will end when Congress and the President agree on a funding bill (or bills) that both houses of Congress pass and the President signs. Possible paths include: 1. A compromise deal that includes some health care and Medicaid language acceptable to both parties. 

2. A “clean” continuing resolution (i.e. without extra policy changes) just to restore funding temporarily while negotiations continue. 

3. Pressure tactics: As the financial pain builds, lawmakers may decide they cannot afford to stay shut down. 

4. Congressional maneuvering or reconciliation: Sometimes one party uses budget rules to pass parts of the funding without needing full consensus.  Which option happens depends on political will, public pressure, and the balance of power in Congress. Meanwhile, federal agencies are preparing shutdown plans, congress members are considering votes, and public opinion will likely play a big role.