US Government Shuts Down After Congress Fails to Pass Funding Bill
October 01, 2025 11:49 AM IST

US Government Shuts Down After Congress Fails to Pass Funding Bill

The United States entered a government shutdown at 12:01 a.m. on Wednesday after Congress failed to agree on a funding deal.  A stopgap spending bill proposed by Republicans, intended to fund the government through November 21, was rejected by Senate Democrats.  Democrats demanded that the measure include extensions of health-care subsidies and reversals of proposed Medicaid cuts, which Republicans refused.

As a result, up to 750,000 federal employees may be furloughed, costing the government about $400 million per day.  Essential workers—such as troops and border agents—will continue working but without immediate pay.  The shutdown is expected to disrupt many government services, delay economic data releases (including Friday’s jobs report), slow air travel, and stall scientific research.

President Trump escalated the standoff, warning the shutdown could lead to “irreversible” job and program cuts, and reiterated his plan to reduce the federal workforce by 300,000 by year’s end.

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