U.S. government has shut down due to a budget dispute

U.S. government entered a partial shutdown at midnight on October 1, 2025, after Congress failed to pass a funding bill before the fiscal year ended, marking the first such crisis since the 35-day standoff in 2018-2019. The deadlock stems from a bitter partisan fight over healthcare subsidies, spending cuts, and border security, with Republicans pushing a temporary plan to maintain 2025 spending levels while trimming Medicaid, which Democrats rejected as a “healthcare betrayal.”

Democrats’ counterproposal to extend funding through October and protect Affordable Care Act subsidies failed to clear the Senate’s 60-vote threshold. President Trump accused Democrats of “unserious demands” in a heated White House meeting, while Senate Minority Leader Chuck Schumer slammed Republicans for “risking America’s healthcare.”

About 1.4 million essential federal workers, like FBI agents and air traffic controllers, are working without pay, while up to 2 million others, including IRS staff and park rangers, are furloughed; the administration’s threat of permanent layoffs has sparked union lawsuits. National parks and museums are closed, trash collection has stopped, and passport services are limited to emergencies, though air traffic control continues to prevent flight chaos.

Medicare and Social Security payments are safe, but programs like WIC, supporting 6 million women and children, face funding shortages, and SNAP benefits could falter if the shutdown extends.

The IRS has paused tax refunds, and key economic data, like unemployment reports, are delayed, with potential economic losses of $1 billion daily. Essential services, including the military and mail, remain operational, but a prolonged shutdown could strain courts and other systems.

Polls show 65% of Americans oppose the shutdown, blaming both parties as midterm elections loom. Congress could pass a temporary funding bill to resolve this, but with neither side budging, federal workers, families, and travelers face growing uncertainty. Check USA.gov for updates.