Why the U.S . Government Has shut Down
On October 1, 2025 , at 12:01 a.m . Eastern Time , The united states Federal government officially entered a shutdown . The reason ? Congress failed to pass the funding bills needed to keep federal agencies running.
What Triggered the shutdown
Each year , congress must approve “appropriations” _ Laws that allocate money to federal agencies and programs . If those bills are not passed by the start of the new fiscal year ( October 1 ) , the government faces a funding gap . In practice , congress often resorts to a temporary measure called a continuing resolution to maintain spending at current levels until a full deal is reached .
In 2025 , partisan disagreements prevented that compromise . Republicans put forward a ” Clean ” continuing resolution to fund the government through November 21, without attaching policy changes Democrats refused to support it unless their priorities _ especially renewing health insurance subsidies under the affordable care act ( Obamacare ) set to expire _ Where included . Meanwhile , Republicans argued policy debates should occur separately from funding measures .
Because neither side would concede all proposals failed in the Senate triggering the shutdown .
What happens During a Shutdown
when the government shuts down , federal agencies must suspend operations that lack legal funding . Nonessential workers are placed on furlough ( temporary leave without pay ) While ” excepted employees “_ those responsible for protecting life and property _ continue working but await back pay. programs like social security and Medicare , which rely on mandatory funding , continue : Other services such as national parks , Scientific research or many administrative tasks may be scaled back or halted .
What makes this shutdown more alarming is the threat of permanent layoffs , not just furloughs . The white house has directed agencies to prepare ” reduction in force”plans, signaling that some workers could be let go entirely if the impasse drags on .
Who bears the cost
Roughly 900,000 federal workers are affected _ either furloughed or forced to work without pay. Many federal services will be delayed or halted , affecting citizens , Businesses and state governments .
Economically a prolonged shutdown can shave growth , stall permits and reduce public confidence
The political Standoff
At its core the shutdown is a clash over power , priorities and political stretagy . Democrats demand the inclusion of health care subsidies and other social policies .
Republicans reject linking policy changes to funding bills. Both parties accuse the other of brinkmanship and blame . Meanwhile the white House is using the shutdown to push for structural changes and possible reductions. federal bureaucracy .
The only certainty until congress reaches a compromise and passes a new funding bill , many federal operations will remain frozen and the broader costs both political and economic will continue mounting

