The government in the United States has shut down as of October 1, 2025, due to a failure by Congress to pass a funding bill. Both Republican and Democratic proposals to fund the government failed in the Senate, leading to the expiration of government funding. The shutdown occurred at 12:01 a.m. on Wednesday, marking the start of the new fiscal year without a budget in place. The main issues causing the impasse include Democrats demanding the reversal of Medicaid cuts and extensions of healthcare subsidies, which Republicans have refused. As a result, many federal employees are being furloughed without pay, while essential workers such as FBI and CIA agents continue working without salary during the shutdown. Most furloughed employees will receive back pay once the government reopens, but contract workers may not unless their firms have budgeted for the shutdown. The shutdown has caused widespread disruptions and economic impact, as it restricts government operations and services until a new agreement is reached and funding is restored. The Senate is expected to vote again to try to resolve the situation, but no immediate resolution was reported as of the start of October 2025.
Separately, in the UK, government financial and budget changes are being discussed ahead of the Autumn 2025 Budget, involving potential tax rises and spending cuts, but no shutdown-like event occurred there.
In summary, the US government has experienced a shutdown due to budget disagreements in Congress, affecting many federal employees and services while negotiations continue.
