The U.S. government has officially shut down after lawmakers in Congress failed to reach an agreement on a spending bill to keep federal agencies funded beyond Tuesday, Sept. 30.
The standoff centered on how federal dollars should be allocated. President Donald Trump and Republican leaders were unable to persuade Democrats, who refused to back down on demands to protect Obamacare tax credits.
“Our position has been very clear: cancel the cuts, lower the costs, save healthcare,” House Minority Leader Hakeem Jeffries said Sunday on ABC’s This Week.
The shutdown, which began at 12:01 a.m. ET on Wednesday, Oct. 1, means nonessential federal agencies reliant on congressional funding will close. Hundreds of thousands of federal workers may face furloughs without pay until a deal is reached.
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What sparked the shutdown?
At the core of the fight is the Affordable Care Act (ACA), widely known as Obamacare.
Democrats have pushed Republicans to address ACA subsidies to reduce costs ahead of open enrollment beginning Nov. 1. Republicans have rejected the push, arguing the matter could be handled later.
“We can have that conversation, but before we do: release the hostage, set the American people free, keep the government open and then let’s have a conversation about those premium tax credits,” Senate Majority Leader John Thune said on Sunday. “I’m certainly open to that. I think we all are.”
What is a government shutdown?
A shutdown happens when the federal government runs out of money to pay its bills. Until Congress passes a funding measure, agencies close or scale back operations.
With Congress closely divided, passing budget bills has become increasingly difficult. Both parties weigh whether to compromise in order to avoid disruption, or hold firm on principles — even if it means forcing a shutdown.
The impact is broad: the National Park Service will likely close parks and monuments, while federally funded museums like the Smithsonian may shutter until funding resumes.
Social Security and Medicare remain funded separately, so benefits will continue. However, applicants and new enrollees could face delays with fewer staff available to process paperwork.
Essential workers such as TSA agents, air traffic controllers, and certain defense and border personnel will remain on duty but won’t be paid until the government reopens. Some workers may refuse shifts, raising concerns about travel delays and staffing shortages.
How long could this last?
Shutdowns can stretch from a matter of hours to several weeks.
The longest in U.S. history came during President Trump’s first term, lasting 35 days from Dec. 22, 2018, to Jan. 25, 2019. The current impasse marks the first since then.
This time, the Trump administration may see strategic advantages. Politico reported that Russ Vought, head of the Office of Management and Budget and a leading voice behind Project 2025, instructed agencies to treat the shutdown as an opportunity for a “Reduction in Force” — signaling possible permanent layoffs instead of temporary furloughs.
Following his direction, agencies began rolling out shutdown plans. On Sept. 26, the Department of Labor published its Plan for the Continuation of Limited Activities During a Lapse in Appropriations, outlining how certain divisions, including the Bureau of Labor Statistics, would halt operations entirely.
Vought has carried forward efforts started by Elon Musk during his short-lived role at the Department of Government Efficiency earlier this year.
Since taking over OMB, Vought has cut hundreds of regulations across sectors such as environment, transportation, health, and workplace safety, halted the Consumer Financial Protection Bureau’s work, and attempted to slash billions in foreign aid.
According to the New York Times, “At the heart of Mr. Vought’s plan, associates say, is the intentional engineering of a legal battle over Congress’s power to decide how government money is spent, potentially creating a new legal precedent for the president to block spending on any programs and policies he dislikes.”
