The US government entered a shutdown early Wednesday (Oct 1, 2025) after Congress failed to reach a funding deal, marking the nation’s 15th shutdown since 1981 and the first since the record 35-day closure of 2018–19.
The deadlock arose after Senate Democrats blocked a Republican stopgap bill, which would have funded the government through November 21. Democrats demanded the inclusion of health-care subsidy extensions and a rollback of Medicaid cuts, conditions Republicans refused to accept.
As a result, federal agencies began closing at 12:01 am, forcing as many as 750,000 federal employees into furlough at an estimated cost of $400 million per day. Essential personnel, including troops, will remain on duty without pay. The shutdown is set to delay key economic data releases such as Friday’s jobs report, disrupt scientific research, slow air travel, and impact services nationwide.
President Donald Trump escalated tensions on Tuesday, arguing that shutdowns could bring “irreversible” cuts to programs and jobs as part of his plan to shrink the federal workforce by 300,000 employees by year’s end. “A lot of good can come down from shutdowns,” he said, suggesting most affected workers were Democrats.
Senate leaders traded sharp accusations as the standoff deepened. Democratic leader Chuck Schumer accused Republicans of trying to “bully” his party into accepting a stripped-down bill, while Republican leader John Thune claimed Democrats were holding the government hostage over health care.
With $1.7 trillion in agency funding at stake—around a quarter of the federal budget—analysts warn the closure could last longer than past shutdowns given the polarized political climate and the unwillingness of both parties to concede. The Senate is expected to hold more votes in the coming days, though a resolution remains uncertain.
