The United States federal government has officially entered a shutdown, commencing at midnight on Wednesday, October 1, 2025, following Congress's failure to reach an agreement on a new spending bill before the fiscal year deadline. This lapse in funding has led to the suspension of non-essential government services and placed hundreds of thousands of federal employees in a state of uncertainty regarding their paychecks. The shutdown is a result of an ongoing impasse between Republicans and Democrats, with key disagreements centering on healthcare funding and spending priorities.

The White House has taken steps to increase pressure on Democrats, including the proposed pause or cancellation of billions of dollars in funding designated for states with Democratic leadership. This move has been widely interpreted as a retaliatory measure by some lawmakers. Meanwhile, Republicans are signaling their intent to continue holding votes on their funding proposals in an effort to sway their counterparts across the aisle, though initial attempts have failed to garner sufficient bipartisan support.

A significant concern during government shutdowns is the impact on federal workers. It is estimated that as many as 750,000 government employees face furlough, meaning they will be sent home without pay until a funding deal is reached. While essential personnel, such as those in national security, air traffic control, and law enforcement, will continue to work, they too will do so without immediate compensation. Historically, Congress has approved retroactive pay for furloughed workers once a shutdown ends, but the immediate financial strain remains a significant hardship.

The economic repercussions of a government shutdown can be substantial. Each week of a shutdown is estimated to cost the U.S. economy around $7 billion, potentially reducing GDP growth. Past shutdowns have led to disruptions in various sectors, including national parks, museums, and federal services like routine inspections by the Food and Drug Administration. Additionally, delays in federal services can impact everything from immigration court hearings to the processing of passports and potentially even mortgage approvals for programs like the National Flood Insurance Program.

The current shutdown marks another chapter in the recurring challenge of federal funding disputes in the United States. Historically, these shutdowns have occurred when Congress fails to pass appropriations bills by the deadline. Attorney General Benjamin Civiletti's legal opinions in the early 1980s shifted the norm from agencies operating with limited capacity during funding gaps to a mandatory shutdown of non-essential functions. The longest shutdown in U.S. history lasted 35 days from December 2018 to January 2019, stemming from a dispute over border wall funding.