As of October 1, 2025, the United States federal government has officially entered a shutdown after Congress failed to pass the necessary appropriations bills, leaving numerous federal agencies without funding. This shutdown stems from political disagreements over Medicaid cuts and healthcare tax credits, preventing bipartisan agreement on funding measures. Essential services like national security, law enforcement, Social Security, Medicare, and Medicaid continue, but many other programs, including national parks, federal courts, and certain health services, face delays or closures as reported by ABC News,. Millions of federal employees may be furloughed or required to work without pay, while contractors and global markets also feel the impact. Internationally, disruptions in US government operations affect global trade, aid programs, and financial markets, underlining the shutdown’s wide-reaching consequences.
What triggers a government shutdown
A government shutdown occurs when Congress is unable to pass appropriations bills that fund federal departments and agencies. Each fiscal year begins on October 1, and if funding agreements are not in place by 11:59 p.m. on September 30, non-essential federal services must halt operations as reported by CRFB.Essential functions related to national security, public safety, and mandatory programs like Social Security, Medicare, and Medicaid typically continue, but other services can be delayed or suspended. The current shutdown stems from disagreements between Republicans and Democrats over Medicaid cuts in the Trump administration’s “Big Beautiful Bill.” Democrats demand reversals on Medicaid reductions and extensions of health insurance tax credits, while Republicans resist altering their proposed funding measures.
How a government shutdown ends
Ending a government shutdown requires a specific legislative process. According to the official FAQ published by US Representative Ami Bera:“Congress must pass, and the President must sign appropriations bills that fund the departments and agencies that have been shut down. The President does not have unilateral authority to end a shutdown. Funding bills follow the same legislative process as any other law, requiring approval from both the House and Senate before enactment.”In practice, this means lawmakers must negotiate and reach bipartisan agreement—often a complicated and contentious process. The longest US shutdown in history, from December 22, 2018, to January 25, 2019, lasted 35 days due to disputes over border security funding.
Immediate effects on federal employees during the shutdown
During a shutdown, federal employees fall into two categories:
- Furloughed employees – Workers prohibited from performing their duties and temporarily unpaid.
- Essential employees working without pay – Staff deemed critical for public safety, including air traffic controllers, TSA officers, and military personnel, continue working but do not receive immediate pay.
Congress traditionally provides retroactive pay once the government reopens, but the delay creates financial strain for workers. Past shutdowns affected millions of federal employees, contractors, and their families, with many struggling to cover daily expenses such as childcare, transportation, and mortgages.
Impact on government services and programs
Shutdowns disrupt a wide range of federal services:
- National Parks and Museums – Closures and suspension of maintenance, trash collection, and visitor services.
- Health Services – FDA inspections, NIH research, and CDC operations may be limited, posing public health risks.
- Immigration Courts – Hearings canceled or delayed, creating significant backlogs.
- Social Assistance Programs – Programs like WIC may face funding shortages if shutdowns extend beyond a week.
- Essential services, including law enforcement, disaster response, and military operations, continue, though employees may work without pay, creating operational challenges.
How travel and transportation are affected
As reported by Reuters, transportation services also face disruption:
- TSA officers remain on duty but unpaid, potentially leading to staffing shortages.
- Air traffic controllers continue working, but inexperienced trainees may be furloughed.
- Flight delays and security line backups can occur if financial hardships force employees to call in sick.
- The Postal Service continues normal operations because it is self-funded, but other agencies related to travel, security, and customs may experience limited functionality.
Financial and economic consequences
Government shutdowns are costly for both federal employees and the national economy. During the 2018–2019 shutdown:
- Around 4 million federal workers went unpaid.
- Federal contractors were often not compensated for missed work.
- The Congressional Budget Office estimated a $11 billion loss in economic activity, much of which could not be recovered.
- Shutdowns also strain government resources as agencies must implement contingency plans, diverting staff time from normal operations.
Military and national security during a shutdown
According to the US Department of War, the Department of Defense continues critical operations, but military personnel may face delayed pay. National Guard troops deployed to cities or on federal missions work without immediate compensation.The Pentagon prioritises activities such as:
- Border security and national defense
- Ongoing military operations
- Maintenance of critical munitions and shipbuilding
- Active-duty troops remain on duty, but financial stress affects military families, many of whom have limited savings.
Judiciary and legal implications
Federal courts operate with partial functionality. While Supreme Court justices continue to receive pay, thousands of judiciary employees may face furloughs. Civil litigation, immigration hearings, and administrative processes may be postponed, affecting public access to justice.
How long do government shutdowns last
The duration of a shutdown depends on congressional negotiations. Short-term funding bills, or continuing resolutions, can end a shutdown temporarily, while full appropriations bills restore long-term operations. Past shutdowns ranged from a single day to over a month, with the 2018–2019 shutdown holding the record at 35 days.Preparing for the impact
- Citizens and federal employees can take proactive steps:
- Stay informed about program and service availability
- Plan finances for delayed pay or service disruptions
- Contact congressional offices for guidance and support
- Communities also step in to provide resources, such as food assistance or temporary services, to help residents affected by halted federal operations.
Global impact of the US government shutdown
The US government shutdown has far-reaching consequences beyond American borders:
- Global markets: Investors worldwide may reassess risk, leading to market volatility. The US remains a central figure in global finance, and disruptions can erode confidence in its stability.
- European union: Economists estimate that a two-week US government shutdown could tnegatively impact EU GDP by €4 billion, with potential increases if the shutdown extends.
- Travel and Tourism: The US Travel Association warns that a shutdown could cost the travel industry $1 billion per week, affecting international tourists and businesses.
- International Relations: Agencies like the US Agency for International Development (USAID) have been impacted, leading to disruptions in humanitarian aid and diplomatic efforts.