A partisan deadlock over a funding plan has forced a federal government shutdown, furloughing hundreds of thousands of workers and disrupting services nationwide as of October 1, 2025.
Oct 1, 2025
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NPR / Getty Images
Funding Lapse Triggers Widespread Disruptions
Much of the U.S. federal government shut down at midnight on October 1, 2025, after Congress failed to secure a bipartisan funding agreement. The shutdown immediately furloughed hundreds of thousands of federal employees and began disrupting government services across the country.
The impasse occurred after the Senate rejected a House-passed Continuing Resolution (CR) that would have funded the government through November 21. A Democratic alternative also failed to pass, leaving no path to a deal before the fiscal year deadline.
As a result, appropriations have lapsed, and the Office of Management and Budget has directed federal agencies to execute their shutdown plans. This marks a significant disruption to federal operations, affecting everything from national parks to administrative support.
Immediate Impact on Federal Workers
Hundreds of thousands furloughed: Non-essential federal workers have been sent home without pay.
Essential personnel work without pay: Employees in critical roles, such as law enforcement and air traffic control, are required to work but will not receive pay until the shutdown ends.
Uncertainty over back pay: While Congress has historically approved retroactive pay for furloughed workers, it is not guaranteed.
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Source:
Bloomberg
Partisan Divide Over Healthcare and Spending
The shutdown stems from a deep partisan divide over policy provisions attached to the government funding bills. Both parties are blaming each other for the failure to reach a compromise.
Democratic Demands
Senate Democrats pushed for a funding bill that included several major policy changes. Key among them was a permanent extension of enhanced subsidies for the Affordable Care Act (ACA), also known as Obamacare. According to the Congressional Budget Office, these proposals would add billions in costs over the next decade.
Republican Position
Republicans in both chambers rejected the Democratic proposals, insisting on a "clean" Continuing Resolution. They argued that major policy changes should not be attached to essential funding legislation. GOP leaders stated these demands were a reversal of policies endorsed by voters in the 2024 election and were unrelated to the immediate need to fund the government.
A last-minute meeting between President Trump and congressional leaders on September 29 failed to produce a deal, solidifying the path toward a shutdown.
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Source:
Fox News
